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Business News

Versace smart again after restructuring

Versace, the Italian fashion house, is back in vogue and back in the black after a three-year restructure.

The business, which returned to the Paris couture schedule this year after an eight-year absence, has revealed net profits of €8.5m (£7.1m) for 2011 against a loss of €21.7m in 2010. Gian Giacomo Ferraris, the chief executive, instigated cost-cutting and a restructure when he joined in 2009, and slashed its €80m debts. Revenues jumped 16.4 per cent to €340.2m in 2011 from €292.3m in the previous year and underlying earnings shot up 73 per cent to €38.7m.

Mr Ferraris said: "These results confirm the global appeal of the Versace brand, and the success of our strategy. During 2011, we took back the Versus licence, we launched new lines of business and we invested in haute couture with Donatella's spectacular return to showing in Paris earlier this year. Additionally, we re-entered the Japanese market, which we believe is a significant opportunity for the group's brands."

The founder Gianni Versace was murdered by a serial killer in Miami Beach 15 years ago. After his death, his sister Donatella took the reins as sole creative director.