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.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty