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Versace CEO Tells the Growth Slowing Down this Year

Versace, the Italian fashion house sees this year as a rather hard year with the lazy sales growth as the tourist traffic in the European cities like Paris, Brussels and London has been hit the by security issues &  demand remains unhinged, said Versace’s CEO.

Versace that is known for its medusa logo and glittering evening gowns has been going from power to power since flirting with the bankruptcy 13 years ago and could be directed for the stock market listing whenever the market situations recover.

“I expect growth in 2016 to be slightly below that of last year,” said Gian Giacomo Ferraris, Versace CEO in an interview. “It’ll be a tough year,” he added.

Versace CEO Tells the Growth Slowing Down this Year
Versace CEO, Gian Giacomo Ferraris. (Image via bloomberg)

Versace, still family-controlled with Donatella at creative helm, saw the revenue rise 8.6% last year at the constant exchange rates in year to 31 Dec. to 729 million dollars.

Its vigilant outlook comes after the numerous luxury groups including LVMH, Richemont CFR.VX and Burberry had posted the weak 1st-quarter sales, hit by the lower tourist spending & depressed demand in the major cities like Hong Kong.

Gian Giacomo Ferraris stated that the business in Europe was developing mainly thanks to the local consumers as there’d been a descent in the buyers from regions such as Middle East & Russia.

The CEO attributed with turning company around & navigating a course through the family feuds. He also said that next year was the earliest Versace could glide as it hadn’t started selecting the advisers and also not decided that on where shares would be listed. Valentino, the Rival Italian luxury brand also said that it was preparing to float by 2017.

In 2014, the United States private equity firm Blackstone had bought a 20% stake in Versace.

Mr. Ferraris stated that Versace was vigorously investing in the social media & e-commerce, both in-house and with the multibrand online retailers like as Yoox Net-a-porter.

He also said that he was in Seoul to grow brand’s business in Korea, which is number 8 luxury goods market and the world’s biggest duty-free market. On Thursday, the Versace CEO was on his way to Japan, where he saw the solid growth prospects.

He said that he was quite optimistic about the growth in Asia.