In its past fiscal year, fashion brand Versace still suffered a 7.4 million euro loss despite higher turnover. It managed a 15.3 million euro profit the year before, but higher costs cut into its profit last year.
Drop in EMEA region
Italian Versace’s turnover grew 3.7 % to 668.7 million euro, even though that growth was also lower than the year before, when it achieved a 17.5 % turnover growth. Seeing how its operational costs grew to 630 million euro, its minor turnover growth was insufficient to offset its increased costs, leading to a loss.
Back in its 2015 fiscal year, Versace’s turnover grew 33 % in the EMEA region, but it had to deal with a 1.1 % turnover drop last year. Asian turnover grew 8.8 %, but that was still considerably lower than the year before (+ 27 %).
Versace opened 38 new stores in 2016, including 29 boutiques and 5 outlets. It opened another four stores in the first quarter of its current fiscal year.
