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After several difficult years, Pinko is on its way to black figures. CEO Laura Manelli sees untapped potential in the Italian fashion brand, which is looking to grow cautiously again.
Debt burden
As of this year, Pinko will generate cash flow again: the fashion label closed the first quarter positively with an EBITDA of 5 million euros, compared to a loss of 1.5 million in the same period last year. “Today we can speak of a real turning point,” said chairman Pietro Negra. The restructuring measures are paying off and the company is ready to get out of its debt arrangement.
Pinko choked on overly high international growth ambitions after extraordinary results during the Covid period, with heavy investments in China and the US, where the market experienced a downturn. This led to a debt burden of more than 100 million euros. A turning point came with the arrival of CEO Laura Manelli, who brought experience from at Armani, Versace and Fendi. The company launched a thorough restructuring: loss-making shops were closed, costs reduced, the model streamlined.
Lowering prices
That appears to be working. “The positive figures give me confidence in a future with growth. I prefer not to speak of a “relaunch”, but of untapped potential,” says Manelli. “There is strong brand awareness and a loyal customer base. We have been working on a new business model that strengthens our identity, while at the same time rethinking processes, priorities and core markets.” According to her, the crisis was therefore financial and not related to brand image.
Today, Pinko is positioning itself as an “entry-to-luxury” brand: “We are lowering our prices to offer our customers the best ratio between quality and price.” The retailer is strengthening e-commerce and aims to have a more selective presence in international markets. A strategic partnership with Lima Commercial Management in Shanghai should re-launch its presence in China in a more sustainable and profitable way. “Our mistake was not that we went to China, but that we did it too fast,” says the company. “We still want to grow – but in the right way: with a focus on sobriety, clarity and value.”
