MILAN — IT Holding saw lower profits and sales in the first quarter as it shifts to focus on its core apparel and accessories businesses.
Pretax profit for the three months ended March 31 plunged 88.3 percent to 4 million euros, or $5.2 million, from 34.2 million euros, or $42.8 million, the year before. First-quarter profits in 2004 were boosted by an extraordinary gain from the sale of beauty unit ITF, the company explained.
Euros figures have been converted to dollars at average exchange rates for the period to which they refer.
Revenue for the period fell 7.5 percent to 194.7 million euros, or $255.1 million. But the company said sales would have risen 4.7 percent, stripping out the effects of currencies and revenue from businesses that IT Holding has sold. Last year, IT Holding sold its fragrance and eyewear divisions as well as brands Romeo Gigli and Gentryportofino.
Operating profit for the quarter rose 4.8 percent to 13.2 million euros, or $17.3 million.
"We started 2005 by redefining the boundaries of our business," IT Holding chief executive officer Tonino Perna said in a statement, "and we are convinced that we made the choice that the market wanted from us [and that] will confirm leadership in our industry."
The ceo said that despite uncertain market conditions for the luxury goods industry, he forecasts full-year sales growth in apparel and accessories.
In geographic terms, sales rose 7.5 percent in Italy, but fell 5.6 percent in the rest of Europe. Revenue from Asia and Japan climbed 17.4 percent. IT Holding said sales in North and South America and the rest of the world were "substantially stable."
The company said its "young" lines sold particularly well, including Exte, which it has developed in-house, and its licenses for diffusion lines Versus, Versace Jeans Couture, D&G, Just Cavalli and Costume National's C1N1C. Together, sales of these brands rose 5.2 percent to 131.7 million euros, or $172.5 million.
IT Holding said sales of accessories, a product category it is expanding, advanced 38.7 percent to 20.8 million euros, or $27.3 million.
The company specified that sales at its Gianfranco Ferre unit posted first-quarter sales of 31.4 million euros, or $41.1 million, and an EBITDA margin of 12.1 percent. The company could not provide year-earlier figures for a comparison.The company also said it has reimbursed 91.9 million euros, or $120.3 million, worth of Ferre bonds that were due May 10. IT Holding still has 185 million euros, or $242.4 million, worth of bonds outstanding. They are due in 2012.
IT Holding said it has reduced its net financial debt to 365.5 million euros, or $478.8 million, from the 377.3 million euros, or $471.6 million, as of March 31, 2004.
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews
“Stranger Things” is getting a new cast member for season 2. Meet @sadiesink_, the 15-year-old who will be joining the Netflix series for its new season. You may recognize her from “The Glass Castle” with Brie Larson and Woody Harrelson, but the Texas native’s next role goes in an entirely different direction. She describes her character, Max, as “a rough and tumble skater girl [who] becomes friends with the boys at school.” The second season debuts on October 27. (📷: @jgreenery) #wwdeye
Amid the Harvey Weinstein controversy, there’s another sector that’s being put under the spotlight for sexual abuse: the modeling industry. While rumors about abuse and sexual harassment of female and male models — and the photographers, agents and others who perpetrated it — have circulated within the fashion world for years, model @cameronrussell started posting stories from models on Instagram last week about abusive situations they’ve encountered — from sexual harassment and molestation to attempted rape. Over 75 have weighed in so far. Read more on WWD.com. Link in bio. #wwdnews
To celebrate its 16th anniversary, @dylanscandybar tapped designers and celebrities to create mosaics out of candy. The mosaics will be auctioned off to support the philanthropic cause of each participant’s choice. Pictured here is the mural created by @aliceandolivia's Stacey Bendet. For a first look at some of the other artwork being unveiled tonight, go to WWD.com. #wwdeye
The annual Veuve Clicquot Polo Classic in Pacific Palisades this weekend drew Kate Hudson, Tracee Ellis Ross, Laura Dern and more. See pictures of the star-studded event on WWD.com. (📷: @chelsealaurenla) #wwdeye
In his new book “Hollywood Royale,” Andy Warhol’s Protégé Matthew Rolston celebrates the Eighties revival of Hollywood glamour. Featuring more than 100 portraits taken by Rolston from 1977 to 1993, the book contains photos of icons like Michael Jackson, Cyndi Lauper, and @drewbarrymore, pictured here in 1991. “Hollywood Royale,” out today, will be accompanied by an exhibition opening at Los Angeles’ Fahey/Klein Gallery on March 1. #wwdeye
"Nowadays when life is not so happy with everything going on in the world, I think people come to me for a little bit of whimsy and color and fun." - Designer Rebecca De Ravenel on her cult-favorite jewelry line. (📸 : @vsteves) #wwd40
“Everyone is talking about how the retail industry is struggling, but I think it’s an incredible time because brands who are doing something different and innovative are setting themselves up for the future,” said @adamgoldston, who founded the luxury athletic brand @apl with his brother @ryangoldsten. The Goldston’s are part of WWD’s 40 under 40: a group of industry notables. See the rest of the list on WWD.com. (📷: @vsteves) #wwd40
@eyeswoon blogger Athena Calderone debuted her first-ever cookbook, “Cook Beautiful,” which is heavily centered on the presentation and visual expression of food. Pictured here are her miso glazed carrots from the book. Get the recipe on WWD.com. (📷: @johnny_miller_) #wwdeye