MILAN — Damiani Group narrowed losses to 8.5 million euros, or $10.2 million, in the second quarter ended Sept. 30 on a 27 percent increase in revenues due to good results from its retail network and improved performance in foreign markets.
Net losses were narrowed from a loss of 9.5 million euros, or $13.3 million, in the previous year. Though first-half consolidated revenues were down 1.5 percent to 55.5 million euros, or $66.6 million, second-quarter figures climbed to 29.1 million euros, or $37.8 million. Dollar figures have been converted from the euro at average exchange rates for the period to which they refer.
Chairman and chief executive officer Guido Damiani emphasized the company performed well in the second quarter, despite the fact that “the demand for hard luxury goods remains volatile and the domestic wholesale channel is still in a destocking phase, maintaining a cautious approach in purchasing.”
Geographically, sales increased almost everywhere except for in its core market of Italy, where they fell 6.9 percent to 39.9 million euros, or $47.8 million. Damiani fared particularly well in Japan, where revenues jumped 33.5 percent to 4.4 million euros, or $5.2 million, driven by the increase in both retail and wholesale channels. Numbers were also up in the Americas and in the rest of the world, increasing 2.5 percent and 14.2 percent, respectively.
Damiani added that he was confident the firm was on its way to achieving precrisis levels of revenues and profitability, citing continued efforts in cost-cutting and controlling of the group’s net debt.
As of Sept. 30, net debt stood at 39.4 million euros, or $46.8 million, compared to 54 million euros, or $75.6 million, at this time last year.