Versace Scores 8 Percent Growth In 2008 Sales

The house of Versace scored an 8 percent rise in 2008 group sales, making the Milan-based business the latest European luxury house to announce turnover growth last year.

Versace said that sales had advanced to 336.3 million euros, or $442.3 million at current exchange rates, adding the Italian group to a list of luxury companies such as LVMH, Gucci Group and Hermes recording revenue rises in 2008 despite the deepening recession. Versace added that, at constant exchange rates, figures would show a 10 percent progression last year.

Versace did suffer a 30 percent decline in net profit to 9 million euros, or $11.8 million, though a release from the house dated Friday, March 27, in Milan said that this was due to non-recurring charges, without specifying their nature. Profits before taxes and charges fell 5 percent to 25.6 million euros, or $34.7 million, a fall of 1.9 million euros, or $2.5 million, compared to 2007.

The one paragraph release said that "the positive economic result coincides with the objective of raising the Asian market to second largest, after Europe, in terms of turnover, as forecast by the management plan."

Under CEO Giancarlo Di Risio, Versace has maintained ambitious expansion plans, opening boutiques in Jeddah, Saudi Arabia; Dallas, Texas and Harbin, China in the last quarter.

The house's planned retail and boutiques investment of 45 million euros, or $59.2 million, will include new boutiques in Dubai Mall, UAE; New Delhi, India and Shanghai, China this year.

Versace, a non-quoted company still largely owned by the founding family, did not release sales figures by product category or by geographic spread.

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