MILAN — Benetton SpA posted 2006 sales in line with its previous guidance and forecast double-digit profit growth for the current year.
Preliminary sales for the 12 months ended Dec. 31 rose 8.4 percent to 1.91 billion euros, or $2.41 billion, in line with its previous forecast for 8 percent growth. Benetton said it is on track to meet the target for 2006 net profit of 6.5 percent of revenue, or about 124.4 million euros, or $156.7 million. Benetton is scheduled to release full-year 2006 results on March 16.
Dollar figures have been converted from the euro at average exchange rates for the period to which they refer.
Benetton said orders for its spring-summer 2007 and fall-winter 2007 collections are strong, especially for accessories and shirts, prompting the company to forecast 2007 sales growth of “at least” 6 to 8 percent.
Earnings before interest, taxes, depreciation and amortization should climb 20 percent, the company said.
Meanwhile, Benetton said that this year it will invest between 250 million euros, or $323.5 million, and 300 million euros, or $388.2 million, on logistics, production capacity and technology systems to better penetrate foreign markets such as Eastern Europe, China and India.
“[Beginning this year] we can confidently dedicate our resources to supporting growth in strategic and fast-developing areas, assisted by the professionalism and enthusiasm of our partners,” Benetton chairman Luciano Benetton said in a statement.
Benetton has not named a chief executive officer since the unexpected resignation of Silvano Cassano in November. Cassano clashed with the Benetton family over international strategy, especially for emerging markets. A Benetton spokesman said Wednesday that a new ceo should be tapped before the company’s annual shareholders meeting on April 26.