Versace Profits Fall 30 Percent

Luxury firm Gianni Versace SpA profits decline, hit by nonrecurring charges.

MILAN — Nonrecurring charges hit the bottom line of Gianni Versace SpA, which last year saw net profits fall 30.7 percent to 9 million euros, or $13.2 million, on an 8.3 percent rise in revenues to 336.3 million euros, or $494.3 million.

This story first appeared in the March 30, 2009 issue of WWD.  Subscribe Today.

The results compare with profits of 13 million euros, or $17.8 million, the previous year. Dollar figures were converted at average exchange rates for the periods to which they refer.

At constant exchange, sales would have grown 10 percent.

In a statement, Versace said the results “coincide with the strategic goal of making the Asian market [Versace’s] second largest after Europe in terms of sales, as forecast by our industrial project.” As reported, Versace has invested 45 million euros, or $57.5 million, in 11 new stores.

Earlier this year, Versace’s chief executive officer, Giancarlo Di Risio, said a consistent strategy was pivotal in order to maintain the positioning of the brand, and that the strategy excluded price cuts. Di Risio said Versace had begun to feel the effects of the downturn “a little” in the last three months of 2008, but that full-year figures were in line with objectives.

No further details of the results were available, and Versace did not spell out the amount or nature of the nonrecurring charges.