MILAN — Marzotto SpA reported 1993 net profit fell 75 percent, to $6.4 million (10.2 billion lire), as sales held virtually even at $1.2 billion (1.95 billion lire).
In 1992, the textile and apparel manufacturer earned 40.1 billion lire.
The Valdagno-based company said strong performances at Hugo Boss — the German-based men’s wear business that Marzotto acquired in 1991 — and at the linen division didn’t make up for a downturn registered by the apparel division on the domestic market.A Marzotto spokesman added that the devaluation of the lira had helped boost exports of Marzotto apparel brands.
Analysts said the results were better than expected after Marzotto reported a consolidated loss of $3.3 million (5.2 billion lire) in the first half of 1993. At the time, the firm attributed the loss to such factors as a higher tax rate and difficult market conditions.
Marzotto also reported that sales in the first quarter of 1994 totaled $372.9 million (591.3 billion lire), down about 2 percent from a year earlier. However, orders booked during the quarter amounted to $488.2 million (774.1 billion lire), up 20 percent compared with the first quarter of 1993, Marzotto added.
Marzotto controls operations in yarns and textiles, in addition to apparel. It produces a number of its own men’s and women’s apparel brands, in addition to producing under license for Missoni, Laura Biagiotti, Studio .0001 by Ferre and Enrico Coveri.