MILAN — Driven by positive results across all product categories, Benetton reported double-digit profit growth in the first quarter of the year.
The Treviso, Italy-based fashion company said net earnings for the period ended March 31 rose 11.9 percent to 27 million euros, or $35.4 million. Dollar figures are at the average exchange rate.
Well-received spring collections for both the Benetton and Sisley brands coupled with increased sales through its directly operated retail network helped advance group quarterly revenue by 10.5 percent to 460 million euros, or $602.6 million.
The company noted strong sales in Mediterranean-based countries, Eastern Europe and India. In addition to a positive sales trend in its adult collections, the company said accessories and children’s were also performing well.
The company said it was witnessing encouraging returns from the redesign and repositioning of its Playlife brand. Earlier this year the company overhauled the predominately activewear label by focusing on preppy, casual clothing rather than performance-driven pieces.
Boosted by one-time gains, operating profits shot up 17.1 percent to 41 million euros, or $53.7 million.
The company estimated that earnings before interest, taxes, depreciation and amortization would grow 20 percent this year, while sales should rise between 6 and 8 percent.
Benetton said it would invest from 250 million to 300 million euros, or approximately $330 million to $390 million, this year, most of it on international expansion.
The firm said net financial debt would not exceed 450 million euros, or $589.5 million.