Home / Knowledge / News / Fashion / Benetton confirms strength of its brand in challenging climate
Benetton confirms strength of its brand in challenging climate
Aug '09
Benetton Group confirms the strength of its brand in a challenging economic climate. Growth in Spring/Summer orders (+1% on previous year), marginal reduction expected for Fall/Winter (-3% on previous year). Comprehensive reorganization launched to improve customer service, product and store appeal and efficiency of industrial and sourcing activities, as well as organization, with important benefits from 1H/09.

In the context of improved service to the distribution network, shipments of the Fall/Winter collection were rescheduled, with significant revenues shifted from Q2 to Q3.

H1/09 revenues impacted by the rescheduling of shipments for an amount of €88 million. Net of the shipment effect, revenues were down by 3%.

Operating Profit at €43 million, substantially in line with 1H/08 net of effect of rescheduled shipment, non-recurring costs (€11 million of costs vs. €8 million of income in 2008) and the foreign exchange impact.

Cash generation improved (+€92 million against the comparable period), in spite of important investments.

The Benetton Group Board of Directors examined and approved the consolidated results for H1/09 and reviewed the first goals achieved by the reorganization plan implemented in previous months.

Consolidated income statement
Group net revenues for the first half of 2009 were €882 million (-11.4% against the comparable half year, corresponding to €114 million), impacted by a major change in the timing of shipments for the Fall/Winter collections, which saw a rescheduling of over €88 million of deliveries to the third quarter, to better match seasonality, provide improved service to clients and improve management of transport and logistics. The overall variation was also impacted by the deterioration in exchange rates (Korean won, Turkish lira, Indian rupee and the rouble among others) against the euro (-0.6%), and a worsening of mix, caused by the rescheduling of deliveries.

Textile segment sales increased by €3 million to €51 million, while apparel sales were €831 million, €117 million lower than H1/08. Of the latter, €132 million was attributable to the wholesale channel, in which the entire delivery rescheduling was concentrated, offset by growth of €15 million in direct sales, mostly resulting from the new openings.

Established markets, net of the effect of the rescheduling, which impacted the most on them, largely maintained their position; Italy, in particular, the Group's main market, demonstrated receptiveness to the new commercial proposals.

Emerging markets grew by 5.8% at constant exchange rates. The following individual markests are noteworthy: India, which recorded very good growth, driven by 95 new openings, and China, which reflected the first effects of the refocusing process with positive growth (on a like-for-like basis) in the second quarter of the year.

Mexico benefited from the opening of 120 corners and 18 new stores in the first year of operations, with a positive result in spite of the disruptions caused by swine flu. Turkey confirmed the strength of its business, with repositioning and enlargement of some stores in prime commercial locations; the opening of a flagship store in Istanbul is expected in October.

Must ReadView All

New Investment for traditional Myanmar textiles, weavers

Textiles | On 21st Oct 2018

New Investment for traditional Myanmar textiles, weavers

Myanmar Artisans Co Ltd, Turquoise Mountain and the DaNa Facility,...

Pak knitwear exporters plan environmental compliance

Textiles | On 21st Oct 2018

Pak knitwear exporters plan environmental compliance

Pakistani manufacturers and exporters of knitwear garments have...

Courtesy: Hyosung

Textiles | On 21st Oct 2018

Hyosung converting spandex plants into smart factories

Hyosung TNC, the textile and trading unit arm of Hyosung, is...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Union budget 2018-19 will have positive impact on apparel industry

Akash Khetan, Narayan Tex Fab

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

Textile industry would like to see inclusion of cotton yarn under MEIS and ...

Shyam Gupta & Ravi Gupta,

Shyam Gupta & Ravi Gupta

Based out of South Delhi, Gargee Designer's provides bespoke formal and...

Anupam Arya,

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Umang Banthia,

Umang Banthia

Established in 2005, SL Banthia Textiles manufactures coated fabrics....

Davide Vigano, Sensoria

Davide Vigano

Sensoria is a leading developer of smart garments and IoMe (Internet of...

Georg Reinhold, Trützschler  Nonwovens & Man-Made Fibers

Georg Reinhold
Trützschler Nonwovens & Man-Made Fibers

Trützschler Nonwovens & Man-Made Fibers, a part of the Trützschler Group,...

Marten Alkhagen, Swerea IVF AB

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Hemant & Nandita, Hemant & Nandita

Hemant & Nandita
Hemant & Nandita

The designer duo of Hemant &amp; Nandita are known for being inspired by...

Amiben Shroff, Shrujan

Amiben Shroff

From its modest beginning in the late 1960s, Shrujan has grown into a...

Igor Chapurin, Chapurin

Igor Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

October 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search