MILAN — Lower interest payments helped IT Holding report a significant hike in first-half pretax profits, which grew to 20 million euros, or $24 million, from 9 million euros, or $10.8 million, in the same period last year. (Dollar figures have...
MILAN — Lower interest payments helped IT Holding report a significant hike in first-half pretax profits, which grew to 20 million euros, or $24 million, from 9 million euros, or $10.8 million, in the same period last year. (Dollar figures have been converted from the euro at current exchange rates.)
Over the past nine months, IT Holding has been focusing on its more profitable brands. The firm, which is listed on the Milan stock exchange, in January sold its fragrance division and in April disposed of the Gentryportofino and Romeo Gigli brands — a move that has triggered a $54 million lawsuit by Gigli. Tonino Perna, chairman and chief executive officer of the group, has increasingly been shifting his attention to the Gianfranco Ferré and Malo businesses, which IT Holding controls along with Exté and clothing manufacturer Ittierre, which produces D&G, Versace Jeans Couture and Versus, Just Cavalli and C’N’C Costume National.
In a statement issued Monday with its first-half results, IT Holding said the turnaround of the Ferré brand has been completed and that Ferré sales in the period grew 16.2 percent to 61.9 million euros, or $74.2 million. Ferré now accounts for 17.7 percent of consolidated group sales, which in the first half increased 13 percent to 350.6 million euros, or $420.7 million. The figure does not take into account 2003 sales derived from the fragrance division and the Gigli and Gentryportofino brands. Group sales would have grown 14.5 percent at constant exchange rates.
In the period ended June 30, earnings before interest, taxes and amortization grew 12 percent to 44.7 million euros, or $53.6 million. Operating profit, or earnings before interest and taxes, grew 31.4 percent to 22.8 million euros, or $27.3 million.
IT Holding said sales in its clothing and accessories division grew 9.9 percent to 303.5 million euros, equivalent to $364.2 million. The clothing and accessories division now accounts for 86.6 percent of group sales.
Perna said the growth in clothing and accessories stemmed from the “success of the Ferré brands [Gianfranco Ferré and the younger line GF Ferré].” The Ferré lines also helped boost the eyewear division, where sales grew a hefty 52.9 percent to 44.5 million euros, or $53.4 million. Eyewear now accounts for 12.7 percent of group sales.The devaluation of the dollar against the euro caused sales in the U.S. to drop 1.9 percent compared with last year. The U.S. accounts for 10.2 percent of sales, or 35.6 million euros, equivalent to $42.7 million.
Perna said a more “balanced financial structure” remains a priority. After the partial, 12.5 percent buyback earlier this year of the 200 million euro, or $240 million, bond that helped finance the acquisition of Ferré in 2002, Perna plans to restructure IT’s debt by the end of the year. The bond expires next May. As of June 30, the group’s debt totaled 288.7 million euros, or $345.6 million.
“Azzedine has been one of the biggest influences in my life. He has always been such a strong, loving, fatherly figure to me. I call him Papa. His designs are indescribably unique, they are pieces of art. He knew how to make the female form look its loveliest. I have so many memories of him; my favorite might be during my first show with him in Paris. He liked me and he wanted to help me get more work. He called all his friends at Kenzo and Comme des Garcons, and asked them to book me. They said, ‘But she can’t walk!’ And he said, ‘but she has such a great ass!' His friendship and support has been the great privilege of my career. I can't imagine life without him. Repose en paix mon Papa.” - @stephanieseymour tells @wwd. #wwdfashion (📷: @steveeichner) #alaia #azzedinealaia
Azzedine Alaïa, flanked by two of his closest friends, models Stephanie Seymour and Naomi Campbell.
He designed Seymour’s dress for her 1995 wedding to Peter Brant, and treated Campbell (who famously called him Papa), like a daughter. For more on the legendary designer, tap the link in bio. #wwdfashion #alaia #azzedinealaia
Azzedine Alaïa's “I-did-it-my-way” ethos stood out starkly at a time when brands are experimenting with consumer-facing fashion shows, coed formats and trans-seasonal collections – anything to perk up lackluster sales of ready-to-wear in an age of Insta-everything. “It’s not creation anymore. This becomes a purely industrial approach,” the late designer told WWD in an interview last year. “But anyway, the rhythm of collections is so stupid. It’s unsustainable. There are too many collections.” Read more about the iconic designer’s life and work on wwd.com, link in bio. #wwdfashion #azzedinealaia (📷: @WWD Archive, 1986) #alaia
Sneaker reselling app @goat’s latest exhibit, "The Greatest: New York," tells the story of New York's sneaker culture. To celebrate the exhibit, an intimate crowd gathered on Thursday night at the pop-up gallery space, located at Platform in Culver City, to hear guest speaker and illustrator @esymai talk about her own rise in streetwear and women in the business. "For me I'm just someone who is creative. I like to create things," said Chang. #wwdfashion
Azzedine Alaïa, one of the most iconic couturiers of the modern era whose body-con designs defined Eighties fashion, has died in Paris. The diminutive Tunisian-born designer, known for his structured knitted dresses with fitted waists and impeccably cut, figure-hugging second skin silhouettes was deeply admired by his peers, and counted supermodel Naomi Campbell - his adoptive daughter - among his inner circle, one of a gang of glamazons including Farida Khelfa, Carla Bruni and Stephanie Seymour who became ambassadors of his style. (📷: Alexandre Guirkinger) #wwdblast