MILAN — Gianni Versace SpA narrowed its losses and cut its debts in the first half of this year and is on track to meet its break-even target in 2007, Versace chief executive officer Giancarlo Di Risio told WWD in an interview.
"Work brings about changes very quickly," Di Risio said, adding that Versace narrowed its losses to 7 million euros, or $9 million, for the six months ended June 30. Revenue totaled 149 million euros, or $192.2 million.
Dollar figures have been converted from the euro at average exchange rates for the period to which they refer.
Versace did not release first-half numbers in 2004. In full-year 2004, losses totaled 95 million euros, or $117.8 million, on sales of 320 million euros, or $396.8 million. The company's revenue base has been declining as it sells off assets such as its fragrance and timepiece divisions.
For 2005, Versace sees its losses narrowing to about 15 million euros, or $18.5 million, while sales are seen dropping 6.3 percent to 300 million euros, or $369 million.
Regarding first-half numbers, Di Risio said Versace saw double-digit sales increases on an organic basis. Stripping out last year's sales contributions from recently sold businesses, Di Risio said retail sales were up 21 percent in the half and wholesale sales gained 30 percent.
Di Risio boasted that Versace reached its 2005 debt-reduction target six months early. Debts total 35 million euros, or $43.1 million, and they are seen dropping to 20 million euros, or $24.6 million, by the end of the year.
"Everything was done in record time," Di Risio said, noting that sales of the Giver beauty arm, watch division and the Versace family's Manhattan town house all helped reduce the debt load. The ceo, who joined Versace one year ago, has made debt reduction a priority. Debts totaled 127 million euros, or about $160 million, when Di Risio began work at Versace.
Still, the manager reiterated that Versace is not shopping around a stake in the company or planning an initial public offer.
"Only in 2007 when we return to profitability, when we have the fundamentals in place, can the shareholders decide what to do," he said.On another upbeat note, Di Risio said women's pre-spring apparel and accessories orders are up 53 percent on the year.
Versace is proceeding with plans to convert its stores to its new retail concept, featuring black lacquered walls, white leather furnishings and a large space dedicated to accessories.
The company has converted its Milan, Rome and London stores to the new concept. Refurbished New York and Washington stores will reopen at the end of October, while a makeover of the Los Angeles store is slated for next year. New stores in Hong Kong and Shanghai also reflect the cleaner, less baroque Versace aesthetic.
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
Now that Celine Dion’s collection has topped $10 million in sales, the pop superstar, fashion icon and newly-minted industry player is eyeing growth in Asia. Read the full report by @tiffanyap, link in bio. #wwdnews #celinedion
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)