MILAN — The going just got a whole lot tougher for IT Holding SpA.
On Thursday, the Italian fashion group forecast an 8 percent drop in full-year revenues and a lower profit margin, after a net loss of 10.1 million euros, or $15.4 million, in the first nine months of the year, compared with earnings of 6.6 million euros, or $8.9 million, in the same period in 2007.
Revenues through Sept. 30 fell 7 percent to 468 million euros, or $712.5 million, while earnings before interest, taxes and depreciation dropped 16 percent to 83.2 million euros, or $126.7 million.
Dollar figures were converted at average exchange rates for the periods to which they refer.
IT Holding chairman and chief executive officer Tonino Perna said the results were “strongly influenced by the negative economic situation, which has directly affected all the markets in which we are present,” leading to a slight drop in orders of the fall-winter 2008 collection.
He added “the difficult situation and the result of orders of the spring-summer 2009 collection” led to the lower full-year revenue forecast and an estimated EBITDA margin of between 15 and 16 percent.
IT Holding, which owns the Gianfranco Ferré and Exte brands and operates under license the Just Cavalli, C’N’C Costume National and Galliano labels, did not break down revenues by brand.
As of Sept. 30, IT Holding’s net financial indebtedness improved to 295.4 million euros, or $428 million, from 352.4 million euros, or $502.9 million, at the same point in 2007, due to a reduction in working capital.
The group’s parent company, PA Investments SA, is also laden with around 140 million euros, or $175.6 million, in debt, although Perna, who holds nearly 61 percent of PA (and a further 1 percent via GTP Holding SpA, a separate holding company for PA), is in negotiations to sell a minority stake to a firm represented by Hong Kong-based businessman Billy Ngok.
In Thursday’s statement, the company said the current state of those negotiations was such that no further information can be provided for the time being, following reports that any deal might not be done until the spring.
“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