Italian family-owned fashion house Versace has enough resources to meet its growth targets in 2014 without seeking investors, its chief executive said on Tuesday. Versace returned to profit last year for the first time since 2009, when it launched a turnaround plan to regain its financial footing. The maker of sparkling gowns worn by stars such as Lady Gaga posted a net profit of 8.5 million euros in 2011, helped by cost cuts and a revamp of its retail network.
"We can make it with our own resources. It can be an advantage to remain independent, because the plan is sustainable. I see the family engaged in the company," Versace CEO Gian Giacomo Ferraris told Reuters. Versace aims at revenues of 500 million euros in 2014, after strong sales in Asia and the United States helped lift sales by 16.4 percent to 340.2 million euros last year.
Since founder Gianni Versace was murdered in Miami in 1997, the company has remained under family control. Platinum-blonde designer Donatella Versace, Gianni's sister, owns the group with her brother Santo and her daughter Allegra, who owns 50 percent and joined the board last year.
Versace has so far put stability before a sale. Italian peers Prada and Salvatore Ferragamo floated on the stock exchange in June last year to fund growth. French group PPR has recently bought Italian suitmaker Brioni, while Chinese menswear retailer Trinity Ltd is eyeing more brands in Europe after buying Italy's Cerruti last year.
Versace has launched a successful collection for Swedish mass market chain Hennes & Mauritz to boost its brand appeal among younger fashion-hungry buyers. It has cut minor licences and bought back its Versus line. At the top end of the luxury chain, Versace returned on the Paris haute couture catwalks in January after eight years.
Ferraris said he was confident of double-digit revenue growth in 2012, in line with 2011, despite weaker spending in Europe, which accounts for around 40 percent of sales. First-quarter sales grew "strong double-digit", he said, with the United States more than offsetting weaker Europe. Versace aims for core earnings (EBITDA) of 20 percent of sales in 2014 from around 11 percent last year. EBITDA rose 73 percent to 38.7 million euros last year, the company said on Tuesday.
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