MILAN — Four months after it revealed plans to go private, Benetton Group said Tuesday it will delist from the Italian Stock Exchange as of May 31.
In its last public set of financial results, which refer to the first quarter of the year, the Italian apparel manufacturer and retailer noted that increased costs of raw materials, such as cotton and wool, and slow economies in the group’s main markets, such as southern Europe, hurt its bottom line. In the three-month period ended March 31, the group’s net profit dropped 48 percent to 10 million euros, or $13.1 million, from 19 million euros, or $26.6 million, in the first quarter last year.
Biagio Chiarolanza, the group’s chief executive officer for operations, foreign business units and finance, said this “unsatisfactory result” was in line with expectations. “We know that the repositioning will not be easy, and the first quarter results confirm that. Nonetheless, the process is under way and will continue with determination, even though, with the economic crisis affecting the principal markets for our products, a rapid recovery cannot be expected,” remarked Chiarolanza.
Operating profit fell 64.3 percent to 12 million euros, or $15.7 million, “impacted by a large reduction in structural costs, which was offset by a cost increase of direct sales, following the takeover of stores previously operated by third parties, and reduction in some extraordinary income,” said the company. Nonrecurring costs associated with the delisting also hit the performance.
Benetton’s parent company, Edizione Srl, said last month that it considered the result of the tender offer to buy the 25.15 percent of Benetton shares it did not already own, launched on March 5 and ended on March 30, “satisfying.” Shares were priced at 4.60 euros, or $5.92 at current exchange. Edizione now holds more than 95 percent of the group’s shares, and trading will be suspended on May 28, 29 and 30, after 26 years on the Milan Stock Exchange.
In the first quarter, the group invested 34 million euros, or $44.5 million, mainly in revamping stores, compared with 27 million euros, or $37.8 million, in the same period last year.
As of March 31, net debt stood at 687 million euros, or $900 million, compared with 534 million euros, or $747.6 million, at the end of March last year.
Looking ahead, Benetton said 2012 “started with positive results in respect of direct sales in nearly all countries,” where the group’s brands are available.
Orders for spring ended in line with expectations, with a 3.3 percent decline compared with spring 2011. Benetton expects a similar trend for the fall season.
The group said it will continue to strive to optimize costs efficiently, but, “due mainly to pressure on revenues,” it does not expect improvements in operating profit, and foresees a slight drop in net profit resulting from an increased cost of debt.
@zacposen's go-to holiday gift? Cookies! "I'll usually bake cookies and send them as a gift," said the designer, who recently released his cookbook "Cooking With Zac: Recipes from Rustic to Refined." Get the recipe for his Brown Butter-Chocolate Chip Cookies via link in bio 🍪🍪🍪 #wwdeye #cookingwithzac
For @monsemaison’s pre-fall 2018 collection, Fernando Garcia and Laura Kim honed in on the brand’s many signatures — men’s wear, which was tweaked and feminized through deconstruction, proportion play and lots of bare shoulders. See the rest of the photos on WWD.com #wwdfashion (📷: George Chinese)
On Friday night, @yohjiyamamotoofficial received the Design for Asia Lifetime Achievement Award in Hong Kong. The 75-year-old designer has been celebrated for many years and is best known for his dark and avant-garde tailoring. “In my long career, in design, architecture, [I’ve been to] so many parties, this is the very first time that I have such a warm feeling, I really appreciate this,” Yamamoto said. #wwdfashion (📷: @dominiquemaitre)
Discovery is collaborating with British pop artist @philipcolbert on a new line of clothing and accessories called Discovery Shark. The collection, which will launch next summer for Shark Week’s 30th anniversary, features a whimsical line of women’s and men’s bomber jackets, sweatshirts, bags and more. #wwdfashion
“I’m always a big champion of a female rapper, and I’m glad to see a new voice that feels unique and authentic that’s coming up, and I think we’re going to see more great things from her,” said @itsjeremyscott about @iamcardib, who performed at @moschino’s Art Basel Miami Beach party last night. #wwdeye (📷: @lexieblacklock)
@janellemonae’s “What’s Your Frequency?” room in @refinery29's #29Rooms made its debut this week at the opening of the Los Angeles art exhibit. “It’s about the ongoing conversation around mass surveillance, the weaponization of technology and cultural uniformity. My space was created so that we can come together and talk about the complexities of our humanity,” said Monáe. #wwdeye (📷: @bucknerphoto)
@pantone announced their Color of the Year 2018: Ultra Violet. Nearly 20 months after the musician Prince’s death, fashion is having a purple moment. Varying shades of purple appeared on spring or fall runways, from @christopherkane to @calvinklein. @gucci’s Alessandro Michele bathed his fall runway in ultra violet-colored light at one point. Pantone 18-3838 is meant to “push the boundaries of what inspires us to look upward and outward to the future.” #wwdnews #wwdfashion (📷: @kukukuba)