PRADA TO PAY: A Milan court has ruled that Prada Group must pay Italian clothing company GTR $6.57 million for not respecting the terms of GTR’s contract to produce clothing for Helmut Lang. (Dollar figures are converted from the euro at current exchange rates.) Prada said the damages are less than 10 percent of what GTR was asking. A GTR spokeswoman said Prada did not satisfy the minimum production quota of the contract. GTR, which produced Helmut Lang’s denim and khaki lines, among others, is evaluating further legal action, the she added.
Meanwhile, Prada said it has named Fabio Zambernardi as design director of the Prada and Miu Miu lines, for all divisions ranging from ready-to-wear to footwear and accessories. Since 1999, Zambernardi was Prada’s design fashion coordinator, and, before that, helped design the footwear line since 1997. In his new role, Zambernardi will work with Miuccia Prada and her husband, Prada chief Patrizio Bertelli, on the development of the collections and image strategies.
D&G SALES LEAP: Dolce & Gabbana said its sales for the year ended March 31 rose 45 percent to $308.9 million. Operating profit for the year ended March 31 came in at $44 million, while gross operating profit came in at $55.3 million. D&G also said direct retail sales for the year-to-date are up 22 percent compared with the same period a year ago. Dollar figures are converted from the euro at current exchange rates.
QUIK ACQUISITION: Quiksilver Inc. has acquired Beach Street Inc., owner and operator of 26 Quiksilver outlet stores operating in 16 states. The $7.5 million stock deal, payable in shares valued at $25, is expected to add about $12 million to the firm’s top line in fiscal 2003. “This business will not only contribute to our sales and profits, but it will also allow us to gain additional flexibility in our off-price business by reducing our reliance on independent off-price retailers, while giving us superior operational efficiencies in inventory planning and shipping,” said Quiksilver chairman and chief executive Bob McKnight in a statement. Quiksilver will integrate Beach Street’s operations into its own QS Retail division, which owned 42 stores — 19 of them in the U.S. — at the end of its last fiscal year. John Thompson, Beach Street’s ceo and principal shareholder, has entered into a one-year consulting agreement with Quiksilver.