VALENTINO Fashion Group’s operating profits fell seven per cent in 2008. But, despite a difficult year, the group – which owns Valentino, Hugo Boss and operates under license Marlboro Classics and M Missoni – intends to remain positive about its growth and future prospects.
"Notwithstanding the uncertainty of the current environment, we are confident that the breadth and strength of our brands leaves us well positioned to deliver on our ambitious growth objectives in the medium term," Stefano Sassi, Valentino Fashion Group’s executive officer, told WWD following the announcement on Friday. He added that while: "The outlook for 2009 remains difficult," the Valentino Fashion Group "acted quickly to optimise processes and save costs where necessary."
Hugo Boss reported a 27 per cent decline in net earnings in 2008 with Valentino, despite experiencing growth in the first half of 2008, dipping one per cent in its revenues to 260.3 million euros. Despite this seemingly bleak performance it was also noted that at constant exchange the Valentino brand gained 5 percent, with an impressive 19 per cent increase in Asia offsetting single digit drops in Europe and the U.S.
The total turnover for the year increased three per cent to 2.21 billion euros while earnings before interest taxes depreciation and amortisation (EBITDA) dropped three percent to 320.4 million. It is thought that Valentino Fashion Group’s net indebtedness is in excess of 2 billion euros – though no official figure has been disclosed.