MILAN — Marzotto is not expecting profit and revenue growth this year, but the company’s executives told analysts Thursday that 2004 should be brighter, citing a double-digit jump in Valentino’s spring orders and the successful...
MILAN — Marzotto is not expecting profit and revenue growth this year, but the company’s executives told analysts Thursday that 2004 should be brighter, citing a double-digit jump in Valentino’s spring orders and the successful restructuring of the textile division, which has been losing money over the last few years.
Marzotto said its consolidated 2003 earnings before interest and taxes and sales should come in line with those figures for full-year 2002. In 2002, EBIT was $148.94 million (converted from 125.3 million euros at current exchange), while sales were $2.13 billion (1.79 billion euros).
Chief executive and vice chairman Antonio Favrin said reduced losses at the textile division and Marzotto’s strategic decision to focus more on the group’s three strong brands — Hugo Boss, Valentino and rugged sportswear line Marlboro Classics — is starting to pay off.
“We’ve reached the objectives we set forth,” he said at an analyst meeting here.
Marzotto executives said they are pleased with the turnaround of Valentino, which the company bought in 2002. The company has been working to increase sales through measures like launching the diffusion line R.E.D., diversifying into new product categories like watches through licensing pacts and bolstering its wholesale presence in U.S. stores.
Valentino narrowed its net loss for the nine months ended Sept. 30 to $14.15 million (converted from 11.9 million euros at current exchange) from $38.63 million (32.5 million euros) the year before. Sales rose 7.6 percent to $137.77 million (115.9 million euros) from $128.02 million (107.7 million euros). On an operating level, Valentino swung into the black with a profit of $5.59 million (4.7 million euros) from a loss of $13.91 million (11.7 million euros) the year earlier. Marzotto said Valentino’s full-year revenue growth should be in line with that of the nine-month period while net losses should decrease.
Marzotto said spring wholesale orders at Valentino were up 20 percent. The company also said that retail sales at directly owned stores had reversed their negative trend in the first part of the year. Sales fell 2 percent in the first half, were flat in July and dropped 11.1 percent in August. Things picked up in the latter part of the year. Sales were up 13.7 percent in September, 31.8 percent in October and 15 percent in the first half of November. Michele Norsa, Valentino’s ceo and Marzotto’s general manager for apparel, downplayed the importance of the Christmas season for Valentino as brand’s sales are not gift-driven.In other Marzotto news, Hugo Boss ceo Bruno Sälzer said Boss Woman is overcoming its botched start in 2001 and should post sales of about $59.44 million (50 million euros) in 2003 and more than $71.32 million (60 million euros) in 2004. Net losses at the division should be $3.57 million (3 million euros) this year, and the unit should break even in 2004.
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“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