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Italian top fashion house Versace is expecting higher revenues in 2012 after launching a collection for retailer H&M (Hennes & Mauritz) this year and revamping its Versus second line, writes Antonella Ciancio.
The family-run company, whose lavish evening gowns are worn by stars such as Lady Gaga, is due to launch its collection for budget fashion chain H&M, which boasts stores in Bahrain, in November.
Versace is joining big fashion names such as Valentino, Lanvin and Missoni who have teamed up with trendy mass retailers to gain younger clients and revive their brand image.
The company draws most of revenues from its top Versace line, but it launched a ‘Young Versace’ line for kids and bought back its Versus licence this year to boost sales and profitability after starting a deep restructuring in 2009.
“We are putting everything into place to further increase revenues in 2012. We are well beyond our initial targets,” said chief executive Gian Giacomo Ferraris at a crammed Versace flagship store during last Thursday’s Vogue fashion night.
Ferraris, who joined Versace in 2009, confirmed the group will return to profit by the end of 2011. Echoing top luxury peers such as LVMH and Salvatore Ferragamo, which are enjoying strong demand despite a weak economic environment, Ferraris said retail sales of the top Versace line were up 21 per cent so far this year at current exchange rates.
Wholesale sales were up 20 per cent in the first half of the year in line with expectations, he said. In March, Versace said it was targeting revenues of more than $411 million (BD155 million this year, roughly in line with 9.1 per cent growth in 2010.
After founder Gianni Versace was murdered in Miami in 1997, Versace narrowly escaped bankruptcy in 2004 before starting a three-year restructuring plan under Ferraris.
Gianni’s sister, designer Donatella Versace, owns the company with her daughter Allegra and her brother Santo. The Versaces’ priority is to put the group back on a strong footing, Ferraris said. “They are totally committed,” he added.
