MILAN — Growth in all company brands and across all regions pushed Valentino Fashion Group SpA's net profits up 18.3 percent to 41.4 million euros, or $53.8 million, on an 11 percent increase in sales to 1.03 billion euros, or $1.34 billion, in the first half.
Currency conversions were made at average exchange rates for the respective periods. Sales would have grown 13.5 percent at constant exchange rate.
The Hugo Boss brand contributed the bulk of sales, growing 11.5 percent to 793.7 million euros, or $1.03 billion, while Valentino showed an 8.2 percent increase, reaching revenues of 120.7 million euros, or $156.9 million.
VFG also owns better men's wear label Lebole and holds licenses for the M Missoni diffusion line and Marlboro Classics sportswear collection. In the six months of the year, those brands grew 12.1 percent to 146.2 million euros, or $190 million.
Group operating profits grew 20.2 percent to 112.4 million euros, or $146.1 million, compared with 93.5 million euros, or $121.5 million, in the same period last year.
"The performance in the first six months of 2007, the amount of fall-winter orders and the growth of direct retailing allow [us] to forecast a 10 percent growth in the remaining part of the year and improvement of operating and pretax profits more than proportional to the growth of sales," the company said in a statement.
VFG, which is now controlled by private equity fund Permira Holding's takeover vehicle Red & Black Lux Srl, said it will hold shareholders' meetings on Sept. 20 and 21 to appoint a new board. Red & Black has bought 60 percent of VFG from the Marzotto family and other investors and is launching a bid for the remainder of the company, looking to delist VFG from the Milan Stock Exchange. Last month, following the Roman celebrations of Valentino's 45th anniversary, VFG took a 45 percent stake in the Proenza Schouler fashion label.
The group said that, in the first six months of the year, it invested 41.4 million euros, or $53.8 million, in its retailing network, opening 34 directly operated stores, and updating its computer system.Robust business in Europe and the U.S. helped boost revenues. Sales in Europe grew 12.8 percent to 716.8 million euros, or $931.8 million. In the U.S., sales rose 9.4 percent to 177 million euros, or $230.1 million. At constant exchange rates, sales would have grown 18 percent in that market. Asia and other countries showed a 4.5 percent hike in sales to 104.3 million euros, or $135.5 million, but sales would have grown 12 percent at constant exchange.
As of June 30, the group's debt stood at 453.5 million euros, or $589.5 million, compared with 407.3 million euros, or $529.4 million, on June 30, 2006.
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
“It’s passion that helps get anybody to a certain point and it’s what’s propelled me,” said Kith founder @ronniefieg, one of WWD’s 40 under 40: a group of industry notables who are changing the face of retail, fashion and beauty. Fieg, who opened a Manhattan flagship on October 7, began his career at age 13 as a stock boy and salesman for footwear chain David Z. “I think staying true to [my] beliefs, hard work and passion have gotten me to where [Kith] is today.” See the rest of the 40 at WWD.com. (📷: @vsteves) #wwd40
25-year-old @samweaving is about to break out this fall, starring in Netflix’s horror film “The Babysitter,” fittingly out today on Friday the 13th. That’s not the only place you’ll be seeing her, though — Weaving’s got a role Showtime’s “SMILF” and another alongside Frances McDormand and Woody Harrelson in “Three Billboards Outside Ebbing, Missouri.” Though she’s got a full plate at the moment, there’s one role she’s got her eye on: Marilyn Monroe. “I’m a little too young at the moment, but it’s on my bucket list,” the actress told WWD (📷: @dandoperalski) #wwdeye
BFF's Poppy Jamie and Suki Waterhouse celebrated the launch of their bag line Pop x Suki at Nordstrom last night. "The line is really about our friendship, and how we are so different but complement each other," said Waterhouse. 👯 (📷: Katie Jones) #wwdeye
After designing the new @louisvuitton and @bulgariofficial flagships and a @chanelofficial boutique opening in Japan, @petermarinoarchitect has another project on his plate: The Lobster Club. Located in the Seagram Building, it’s the famed architect’s first restaurant project in New York, serving up modern Japanese brasserie-style cuisine. Bronze hues, bespoke material detailing, blush and chartreuse tones and a heavy emphasis on Picasso can be seen throughout. Mark your calendars for Nov. 1 for the much-anticipated opening. (📷: @clint_spaulding) #wwdeye