News Flash

Marzotto's apparel business' sales rise 11% for Q1, 2005

23 May '05

4 min read

In detail:
The operating profit of the Apparel Business was €89 million (€77 million as at March 31st, 2004), increased by 16%. Hugo Boss with a 14% rise (18.8% on sales) and Valentino, increased by 16% (15.3% on sales), were the main contributors.

The operating profit of the Textile Business was €1 million, almost unchanged on March 31st, 2004 despite the sales decrease.

Operating profit As at March 31st, 2005:
a) net consolidated profit including minority shareholders was equal to €56 million, up 27% on 2004 first quarter's €44 million;
b) net profit attributable to the Parent Company's shareholders amounted to €30 million (March 31st, 2004: €22 million), with a 35% increase on the first quarter of 2004.

Net profit
Group's net financial debt decreased to €514 million as at March 31st, 2005, against €543 million as at December 31st, 2004 (March 31st, 2004: €587 million).

Net financial debt
Current Year Outlook
Due to the approval of the demerger plan passed by the Shareholders' Meeting, forecasts for the current year have to be made separately for the two businesses, as in the Directors' 2004 Report.

The trend in the first quarter confirms the expectations of the beginning of this year regarding the different market conditions:

- The high-end fashion market is showing higher growth rates in the Asian markets and in the United States;
- The textile market is reflecting the impact of thehe competition from non-EU manufacturers in the woollen yarns and fabrics segment.

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