We’ve noticed a new trend emerging. This trend, friends to the luxury industry, is increasing profits. This week, Gianni Versace SpA joins the league of luxury brands singing the ‘things are looking up’ tune, increasing its full-year revenue and profit forecasts after reporting higher nine-month sales. According to CEO Gian Giamarco Ferraris, revenue for 2010 will exceed 280 million euros ($395.2 million AUD), smashing targets (and January forecast) of 270 million euros ($381.1 million AUD).Since joining the company in July last year, Ferraris has made some bold alterations to Versace’s business. Closing factories and reducing one’s workforce is rarely a recipe for popularity, but it seems to have delivered the company from the forces of financial evil. Versace has since discontinued involvement with designer cars and helicopters, repositioning the brand around clothing and accessories. By 2011, it plans to have acquired the strength to guarantee profitability and future growth. They are already well ahead of their target.
Great to see another brand find its feet in wake of the GFC, particularly one of significance to the fashion industry and that has experienced a fairly unsettled recent past. Versace currently operates 88 directly operated stores, and plans to unveil a new concept store in Shanghai in 2011, before rolling on to Milan and Paris. Right on the money with a launch in China, Versace has always been confident, if nothing else. True to style, Versace reports its growth potential to come from within. An exciting prospect for those of us who have always found this brand intriguing. We can’t wait to see what’s in store- so to speak.
Image credit: bayareabags.com
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