Pambianco: analysis of fashion 2004 financial statements

Pambianco Strategie di Impresa has analyzed the 2004 financial statements of the top 20 Italian fashion groups (by billings: Luxottica, Gucci, Marzotto, Benetton, Prada, Armani, Max Mara, Diesel, Safilo, Miroglio, Bulgari, It Holding, Dolce & Gabbana, Zegna, Ferragamo, De Rigo, Burani, Tod's, Geox and Versace), which represent overall billings of 21,610 million euros.

In 2004 billings grew by 6.1%, in 2003 there was a downturn of 2.2% and an increase of 2.4% in 2002. The 2004 figure shows good recovery in sector growth. Ii is real growth given that billings are no longer influenced by acquisitions.

The group with the greatest growth in 2004 is Geox at 33.8%, followed by Diesel at 27.5% and Dolce & Gabbana at 21.6%.

There is also improvement in net profits. The profits of the sample Italian companies went from 5.4% in 2003 to 6.6% in 2004. The reasons for this improvement are to be found in the recovery of sales on the one hand, and in the effects resulting from cost reductions on the other.

The results are positive especially as the dollar is still low against the euro, as is the yen, and for the top 20 Italian fashion groups the US market is worth 20% of billings and the Japanese market around 8%.

Pambianco forecasts that there will be a further growth in billings of around 8-10 points and around 1-2 points in net profits for 2005.