MILAN — IT Holding on Wednesday reported a net loss of 9.9 million euros, or $15.1 million, in the first half of 2008, compared with net profits of 1.7 million, or $2.2 million, in the same period a year ago.
This story first appeared in the August 28, 2008 issue of WWD. Subscribe Today.
Sales showed a 4.7 percent drop to 304.3 million euros, or $465.5 million, in the first half, compared with 319.2 million euros, or $421.3 million, in the same period last year. Dollar figures were converted from the euro at average exchange rates for the period to which they refer.
In the first half, earnings before interest, taxes, depreciation and amortization dropped 16.5 percent to 49.7 million euros, or $76 million, from 59.5 million euros, or $78.5 million. The company said the results were negatively affected by a 2.8 million euro, or $4.2 million, provision made for legal and tax disputes, currency fluctuations and declining revenues for the fall season. Earnings before interest and taxes amounted to 14.4 million euros, or $22 million, down 44 percent from 25.7 million euros, or $33.9 million, in the first half of last year. The company attributed the drop to a slight increase in the amortization of costs related to design and development of collections.
Tonino Perna, chairman and chief executive officer, said that, in light of the orders for the spring 2009 collections, he was “confident” IT Holding “will attain a level of revenue and profit for the year 2008 that matches the levels achieved in full-year 2007.” Perna said the “only risk connected with the performance of revenues for the current year refers to the performance of orders relating to the spring-summer 2009 season and specifically the merchandise that will be shipped in the current year.”
IT Holding controls the Gianfranco Ferré, Malo and Extè businesses and holds the VJC Versace, Versace Sport, Just Cavalli, C’N’C Costume National and Galliano licenses.