MILAN — IT Holding SpA’s nine-month sales slipped, but higher margins at Gianfranco Ferré lifted profits for the company.
Net profits for the nine months ended Sept. 30 more than doubled to 6.6 million euros, or $8.8 million, from 3 million euros, or $3.7 million, the year before. Operating profit grew 9 percent to 45.9 million euros, or $61.5 million. Dollar figures are at the average exchange rate.
IT Holding’s nine-month revenues shed 13.2 percent to 502.5 million euros, or $673.4 million. A drop was expected because IT Holding lost a lucrative contract for Dolce & Gabbana’s diffusion line D&G with the fall-winter 2006 season.
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IT Holding said its nine-month revenues on a comparable basis, excluding last year’s contribution from D&G, grew 33.7 percent. IT Holding cited growth at its Ferré, accessories and young fashion divisions for the gain.
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The company has been working to compensate for losing the D&G business by developing in-house brands such as Malo and growing its already significant presence in diffusion fashion with collections like Just Cavalli and Galliano. It is also pushing accessories through a newly created division, +IT Accessories.
IT Holding chairman Tonino Perna said the nine-month figures and orders for spring-summer 2008 make him optimistic. “These indications allow management to be confident that the targets for 2007, announced to the financial community in June, will be met,” he said in a statement.
In June, IT Holding executives said the fashion company plans to grow its consolidated sales an average of 14.4 percent a year through 2010, ultimately reaching 840 million euros, or $1.1 billion.
In the first nine months of the year, revenue at Ferré grew 14.9 percent. IT Holding’s diffusion lines division, Ittierre, posted like-for-like sales growth of 48.8 percent, the company said. Like-for-like sales at the accessories division climbed 54 percent.
The company noted that it is continuing to trim debt. As of Sept. 30, net debt stood at 352.4 million euros, or $472.2 million, compared with 352.4 million euros, or $437 million a year earlier.