Sep 7, 2018
Trussardi closes 2017 with €30.6 million loss, expects return to profitability in 2019
Sep 7, 2018
Italian fashion label Trussardi closed the 2017 financial year with a net loss of €30.6 million. The result was due to significant impairments and to the €7.4 million loss recorded last year. Output value was down 8.6% to €24.2 million, with revenue down 10.4%. The information is contained in Trussardi’s annual report as seen by Reuters.
According to rumours reported by Italian media, the Trussardi family is negotiating the sale of a stake in the group to investment fund QuattroR, in which Italian state-owned merchant bank Cassa Depositi e Prestiti has an interest. The President of QuattroR, Andrea Morante, was the CEO of Italian jeweller Pomellato until 2015.
Neither Trussardi not QuattroR were available to comment on the news. In a letter to the shareholders dated May 2018, Trussardi stated that its core business results were positive, though less so than in the past. Impairment worth €31.3 million for the group’s subsidiary TRS Evolution (the licensee for apparel and leather goods of the Trussardi and Trussardi Jeans brands) affected the group’s result, with EBITDA down 38.6% to €3.167 million. The net financial position as of December 31 2017 stood at -5.15 million.
“2017 was a year of transformation and change, specifically focused on the strategic repositioning of the Trussardi brand in the contemporary luxury segment,” stated Trussardi. The group has revised its 2017-2021 industrial plan, whose targets it was falling short of, also in the light of a €51.5 million loan obtained last March from a consortium of banks. The group’s holding company, Finos, also approved a share capital increase of €5 million for TRS Evolution.
The revised plan forecasts an improvement in the financial position for 2018, and the goal is to return to profitability in 2019.
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