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Valentino Fashion Group posts double-digit profit rise in 2005

24 Mar '06

3 min read

The Board of Directors of fashion group Valentino Fashion Group SpA, held in Milan, approved the company's and the group's accounts for the year ended at 31st December 2005, along with the Directors' Report.

The net consolidated sales for the year ended as at 31st December 2005 were €1,728.0 million, increased by 11.4 percent on last year's €1,550.6 million. The growth was mainly due to the positive sales trend at Hugo Boss (+12.1 percent) and Valentino (+22.9 percent).

Sales increased on all markets and in particular on extra-European ones: America +12.3 percent and Asia +31.8 percent (particularly in China +65.9 percent and Japan +47.4 percent also thanks to the acquisition of Valentino Boutique Japan). Positive growth also seen on European markets: +8.9 percent achieved on the difficult German market and double-digit rises in France +12.5 percent, Spain +22.4 percent, Scandinavia +20.6 percent, Russia and Eastern Europe +16.8 percent.

The year's operating profit was €195.2 million (11.3 percent on sales), increased by 14.8 percent on €170.1 million in 2004 (11.0 percent on sales).

The consolidated net profit, including profit attributable to minority shareholders, was €143.2 million (2004: €100.2 million) increased by 42.9 percent. The strong improvement was mainly due to the results of Hugo Boss, €108.2 million (+€20 million) and Valentino, €20 million (+€13.4 million).

The net profit attributable to the Parent company's Shareholders was up to €90.5 million (2004: €58.0 million), posting a 56.0 percent increase. As at 31st December 2005, the group' workforce was of 9,844 employees, against 8,903 at 2004 year's end. The increase in the number of people employed was, for about the 60 percent, the result of the growth of direct retail.

Valentino Fashion Group SpA

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