Valentino Takes a Hit
The luxury market continue to churn under recession-induced pruning:
MILAN — Valentino Fashion Group SpA reported a net loss of 483.1 million euros, or $710.1 million, last year as a result of costs associated with the consolidation of the group and a writedown in the valuation of the company’s brands.
The loss compares with a net profit of 29.4 million euros, or $40.2 million, in 2007. Excluding impairment charges and an asset devaluation of 498.2 million euros, or $732.3 million, the loss would have been 67.1 million euros, or $98.6 million, according to the group’s annual report.
In 2008, group revenues grew 2.8 percent to 2.2 billion euros, or $3.2 billion, compared with 2.1 billion euros, or $2.8 billion, the previous year. Dollar figures are converted from euros at the average exchange rates for the periods to which they refer.
The report is to be considered pro forma, as it takes into account the consolidation of Red & Black and VFG under the private equity fund Permira last year.
Read the rest at WWD.com
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