MILAN — Jil Sander AG saw larger losses and declining sales in 2005, but chief executive officer Gian Giacomo Ferraris said that the company is on track to meet its goal of posting a positive operating profit this year.
The company widened its consolidated net loss to 37.3 million euros, or $46.3 million, from 29.6 million euros, or $37 million, in the prior year, blaming one-time restructuring costs for weighing down accounts. The company missed its target to cut losses in fiscal ’05, but said it’s on track to post a positive operating profit for the current year. (All dollar figures have been converted from the euro at average exchange rates for the period to which they refer.)
Sales for the 12 months ended Jan. 31, 2006 slid 5.2 percent to 130.4 million euros, or $161.7 million, short of Ferraris’ December forecast for annual sales of 140 million euros, or $173.6 million. Jil Sander said sales were strong in the Far East and U.S. Comparable figures from 2004 are based on the 12-month period ending Dec. 31. The company has since shifted its fiscal year to end in January.
Ferraris said that restructuring efforts at Jil Sander, including the transfer of some manufacturing operations to Italy from Germany, took longer than anticipated. But overall he was upbeat for the future, citing positive feedback on creative director Raf Simons’ debut collections and plans for a new London store come September.
Hamburg-based Jil Sander released the numbers via the Frankfurt stock exchange. Independent shareholders still hold about 1.5 percent of Jil Sander’s capital. Change Capital will propose a squeeze out of those shares in September.
Prada Holding owned and managed the Jil Sander business for all of fiscal 2005. It sold the business to London-based private equity firm Change Capital in February, just three days after Simons showed his first women’s collection for the brand.
Jil Sander, the brand’s namesake designer and founder, left the company for the second time in November 2004. An anonymous team designed the collection until Simons unveiled his first men’s collection last January.