MILAN — Valentino Fashion Group SpA said Thursday that 2006 net profit gained 5.2 percent to 95.2 million euros, or $119.9 million, and issued a bullish forecast for the current year.
The group, which owns Hugo Boss AG and the Valentino fashion house, said a direct retail strategy along with the launch of product extensions helped propel revenue by 13.6 percent to 1.96 billion euros, or $2.47 billion. All figures are converted at the average exchange rate to which they refer.
The company, encouraged by wholesale and retail performance in the first two months of the year, said in a statement that it expected 2007 sales and profit “to grow significantly.”
Operating profit soared 20.7 percent to 243.3 million euros, or $306.6 million.
Hugo Boss, which reported its own financial results on Wednesday, is still Valentino FG’s cash cow, although the Valentino brand marked strong gains.
Sales at the Rome-based luxury house rose 14.5 percent last year to 239.5 million euros, or $301.8 million.
The future of Valentino, who is celebrating his 45th anniversary this year, has been a source of speculation. Earlier this month, the designer looked tearful as he took his bow following his fall ready-to-wear show in Paris. Some industry insiders expect Valentino’s anniversary couture show and party this summer in Rome to be his swan song. But the company and the designer have insisted retirement rumors were groundless.
By division, women’s rtw sales for the group, which includes Valentino, Hugo Boss and the M Missoni and Marlboro Classic licenses, jumped 36 percent to 420 million euros, or $529.2 million. Group sales of footwear and leather accessories climbed 27 percent to 211 million euros, or $265.9 million.
Valentino FG marked double-digit growth across key markets like the Americas and most of Europe. Momentum was slower in Germany and Asia where sales advanced 9.7 and 9.5 percent, respectively.
The group said it invested 118.9 million euros, or $149.8 million, last year, with the majority of the capital going toward its retail network. Revenue from directly owned stores generated 15 percent of total 2006 sales, or 302 million euros, or $380.5 million.