Gianni Versace Spa closed a strong fiscal year in 2014, with revenue and profit rising by double-digits. Revenue rose 17 percent to 548.7 million euros, while net profit grew 27 percent to 26.3 million euros. Against general sentiment in the industry, Versace’s chief executive Gian Giacome
Ferraris is happy to see the latest currency fluctuations. In fact, Ferraris said further growth could come as the euro nears parity against the dollar. "I've been waiting for parity [for years]," said Ferraris in an interview. "Now we are more competitive, our prices are more interesting," reports Fox News.
Likewise, Versace is enjoying rising revenues as opposed to other rivals such as Gucci, whose sales were flat or falling in 2014 after years of strong growth.
Versace to reach out to a wider consumer base
"Unlike other players, we still have large shares of the market to win," said Ferraris. "Both in emerging and mature markets, we are often under-penetrated."
In order to tap in those markets, Versace plans to open more stores around the world utilising the cash injection of 210 million euros made by Blackstone for a 20 percent stake in the firm.
The money allowed the Italian firm to open more than 40 directly-operated stores around the world in 2014 and win prime locations, like Fifth Avenue in New York or Galleria Vittorio Emanuele in Milan, highlights Bloomberg. "We couldn't afford such locations before," recalls Ferraris. A further 30 stores will open in the coming months US, Europe and Asia, mainly in Japan.
Explaining the steady growth, Ferraris says that "Versace is stabilising, we're still glamour and colourful, but if we want to reach a wider customer base we also have to be more consistent."
This new design strategy is paying off for the company, which has enjoyed sales grew in all areas, with North America the fastest-growing market for the third year in a row, the company said.
On the downside, the previous estimate of doubling 2013 sales of 480 million euros by 2016 won´t be feasible until at least 2017, Versace’s CEO said.