SANDER SUFFERS $9.3M LOSS, CITES WEAK LUXE DEMAND
Byline: Alessandra Ilari
MILAN — The Jil Sander Group’s first year without its founding designer’s influence left much to be desired.
The group endured a net loss of $9.3 million in 2001, versus $4.2 million in net profit in 2000, as sales rose 2.9 percent to $121 million.
The company attributed the loss to weaker demand for luxury goods in the wake of the global economic crisis as well as to costs incurred by the firm as it expanded its retail presence with more directly owned stores.
Sander resigned as chief designer in January 2000, less than six months after Prada chief executive Patrizio Bertelli acquired a majority stake in the firm. Recently, reports have swirled around the European fashion markets that Sander and Bertelli might be on the verge of making up. In March, Prada’s Miuccia Prada said that the Sander line was making money but conceded that “people hate the idea that she’s not there.”
Last year, the fashion house reacquired the rights to import and distribute its products in Japan and, at the same time, took over the management of eight shops in Japan. Furthermore, new shops were inaugurated in London, Taipei and Dusseldorf while a flagship store is slated to open this summer in New York.
Last year, significantly higher sums were invested in production, logistics, public relations and advertising, the company said.