Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Versace Sees Growth Slowing in 2016, Chief Executive Says

Versace's cautious outlook comes after several luxury groups including LVMH, Richemont and Burberry posted weak first-quarter sales.
Versace store | Source: Shutterstock
By
  • Reuters

MILAN, Italy — Italian fashion house Versace sees 2016 as a tough year with slower sales growth as tourist traffic in European cities such as London, Paris and Brussels has been hit by security concerns and demand remains unstable, its chief executive said.

Versace, known for its glittering evening gowns and medusa logo, has been going from strength to strength since flirting with bankruptcy in 2004 and could be headed for a stock market listing when market conditions improve.

"I expect growth this year to be slightly below that of 2015," Versace chief executive Gian Giacomo Ferraris told Reuters in an interview on the fringes of the Conde Nast luxury conference. "It will be a tough year."

Versace, still family-controlled with Donatella at the creative helm, saw revenue rise 8.6 percent in 2015 at constant exchange rates in the year to Dec. 31 to €645 million ($729 million).

ADVERTISEMENT

Its cautious outlook comes after several luxury groups including LVMH, Richemont and Burberry posted weak first-quarter sales, hit by lower tourist spending and depressed demand in key cities such as Hong Kong.

Ferraris said business in Europe was growing mainly thanks to local consumers as there had been a drop in buyers from regions such as Russia and the Middle East.

The chief executive credited with turning the company around and steering a course through family feuds, said next year was the earliest Versace could float as it had not started choosing advisers and not decided on where the shares would be listed. Rival Italian luxury brand Valentino has also said it was planning to float in 2017.

US private equity firm Blackstone bought a 20-percent stake in Versace in 2014.

Ferraris said Versace was actively investing in social media and e-commerce, both in-house and with multibrand online retailers such as Yoox Net-a-porter.

He said he was in Seoul to develop the brand's business in Korea, the world's biggest duty-free market and number eight luxury goods market. On Thursday, he was on his way to Japan, where he also saw solid growth prospects.

"I am quite optimistic about our growth in Asia," he said.

By Astrid Wendlandt and Joyce Lee; editor: Elaine Hardcastle.

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Financial Markets
A financial lens on the fast-changing fashion sector, including markets, investors and deals.

The Best of BoF 2023: Diversity’s Litmus Test

In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.


The Year Ahead: The Future of Fashion Deal-Making

For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.


The Investment Giant Behind Some of Fashion’s Biggest Deals

L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
BoF Professional - How to Turn Data Into Meaningful Customer Connections
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
BoF Professional - How to Turn Data Into Meaningful Customer Connections