Benetton halves its losses in 2024
The drastic therapy prescribed by CEO Claudio Sforza at Benetton seems to be bearing fruit. In the last decade, the Italian apparel group had accumulated losses for nearly €1.6 billion, and when Sforza joined the group in June 2024 to spearhead its recovery, he announced a radical restructuring plan, which is yielding better-than-expected results. In 2024, Benetton Group generated revenue of €916.9 million, virtually on par with the €1.098 billion recorded the previous year, while the group's losses were reduced from €235 million in 2023 to €100 million last year.
Sforza had forecast losses of €110 million in 2024, but Benetton did better than expected, managing to cut losses by more than half. The group's net financial debt also improved by approximately €50 million, falling from €460 million in 2023 to €411 million last year. Sales have remained stable, despite an extremely tense business environment and the fact that the group has undergone an in-depth reorganisation.
To begin with, Benetton has concentrated all operations at one site, in Castrette di Villorba in Veneto, leaving its prestigious former headquarters at Villa Minelli in Ponzano Veneto. The move generated 'significant structural savings' according to Benetton, which also shut down a number of stores, especially those run by external partners, some of which were hit by major solvency issues in the last few years.
Benetton has embarked on an extensive rationalisation and renovation programme of its stores and distribution channels, prioritising the upgrade of its directly operated shops. In 2024, the latter's sales grew by 7% over the previous year. In parallel, Benetton has invested significantly in online retail, launching a revamp of its e-shop and setting up an e-business division reporting directly to Sforza. The goal is to increase the Benetton e-shop's current 13% share of the group's overall revenue to 20%-25% in the next few years.
Benetton has also made a major effort to reorganise its manufacturing operations, reducing internal capacity and resorting to third-party producers. The group's production sites in Tunisia, Croatia and Serbia have been closed. Benetton currently produces 40% of its assortment in-house, and the rest is supplied by contractors, enabling the group to slash collection development time from 12 to six months. This has allowed the group to reduce fixed working capital, to respond more quickly to emerging market trends, and to develop a product range more in line with consumers' tastes.
Following the store and factory closures, the group's workforce has been downsized. Benetton has not provided details about redundancies, simply stating that the measures introduced 'have affected a significant number of the parent company's employees.' Last December, the group struck a deal with unions to encourage employees to leave.
In terms of products, in April Benetton launched two new collections inspired by South Korea, one of its main markets, where it operates 300 stores for United Colors of Benetton and Sisley, the group's premium label. The first was BBOLD, a womenswear capsule collection by Benetton with a K-Pop vibe, designed by local designers, and the second was Sisley K, a more sophisticated womenswear line also developed by Korean creatives, inspired by the country's style.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Fashion Network
16 hours ago
- Fashion Network
Morellato Group, Italy's leading jewelry and watchmaker, closes fiscal year with €723 million revenue and 21.3% EBITDA
Morellato Group, a prominent Italian jewelry and watchmaking company headquartered in Fratte di Santa Giustina in Colle, Padua, concluded its 2024/25 fiscal year (ending February 28, 2025) with positive financial results and improved profitability. The company maintained its leadership position in Italy, reporting revenues of €723 million, a slight decrease from €737 million the previous year, while its EBITDA margin rose to 21.3%. Employing 4,800 people, Morellato Group oversees 22 brands, including Morellato, Bluespirit, Christ, D'Amante, Cleor, Philip Watch, and Sector No Limits. Precious jewelry accounted for 75% of its turnover, e-commerce contributed 20%, and international markets represented 70% of sales. The group's products are available through 7,000 wholesale retailers across 60 countries and 660 directly operated stores, complemented by six proprietary e-commerce platforms. Morellato expanded its retail footprint in the last fiscal year with 19 new store openings. It initiated a store refurbishment program across four European markets, aiming to increase its retail presence in 2025. The company emphasized its commitment to sustainability by producing all precious collections under the Morellato brand using 100% recycled silver. It continues to support the growth of Live Diamond, a brand offering fully sustainable precious jewelry made from 100% recycled gold and lab-grown diamonds and gemstones. The German brand Christ also utilizes only 100% recycled silver in its products. In 2024, Morellato Group signed a significant licensing agreement with the Karl Lagerfeld fashion house to produce and distribute watches and jewelry, bringing the total number of brands it manages, including owned and licensed, to 22. 'I am satisfied with the results achieved in 2024, a particularly challenging year for the market environment and for the group's efforts, which allowed us to increase profitability and gain new market shares,' said Massimo Carraro, president of Morellato Group. 'We accomplished this by consistently implementing our corporate manifesto 'Make It Precious,' which serves as our guiding principle and decision-making framework, always focusing on the customer. This approach has proven effective, and I am even more convinced of the importance of continuing it.' Morellato Group owns 15 brands: Morellato, Sector No Limits, Philip Watch, Lucien Rochat, Live Diamond, Oui&Me, La Petite Story, Chronostar, and FAVS, along with retail brands Bluespirit (specializing in 18-karat gold) and D'Amante (focused on diamond and gemstone jewelry) in Italy, and Christ (operating in Germany and Austria), Brinckmann & Lange, Cleor (based in Paris), and Noélie. The group also holds licenses for seven brands: Karl Lagerfeld, Maserati, Chiara Ferragni, Trussardi, Esprit, Jette, and Guido Maria Kretschmer. A pioneer in the jewelry sector with ESG certification, Morellato began publishing its Sustainability Report in 2022 following international GRI Standards. Since 2023, the group has been certified by the Responsible Jewellery Council (RJC), the leading global organization for defining and monitoring sustainability criteria in the jewelry industry, adhering to the strictest environmental standards.
Fashion Network
18 hours ago
- Fashion Network
After nine years at Dior, Maria Grazia Chiuri moves on
The wave of leadership changes across luxury fashion houses continues. Christian Dior Couture has officially announced the departure of Maria Grazia Chiuri, its artistic director for women's collections. The news comes just one day after Dior 's latest runway show in Rome, ending months of speculation about her planned exit. Since taking the reins in July 2016, the Italian designer has led Dior's women's ready-to-wear, haute couture, and accessories lines. Known for her feminist perspective, Chiuri played a key role in revitalizing the flagship LVMH brand. Between 2018 and 2023, Dior's revenue quadrupled under her direction. This announcement follows Dior's earlier confirmation in January of the exit of British designer Kim Jones, who led Dior Men for seven years. Jonathan Anderson, formerly creative director at Loewe, another LVMH label, replaced him in April. Earlier this year, speculation circulated that the Irish designer might also assume creative leadership of Dior's women's lines. Chiuri's next professional chapter remains unclear. She was previously rumored to be in discussions to lead Fendi 's women's collections, though those talks now appear unlikely to move forward. Born to a seamstress who ran a small atelier, Chiuri has long been drawn to fashion. Now 61, she studied at the Istituto Europeo di Design in Rome and began her career at Fendi, an LVMH brand, in 1989. There, she focused on handbag design and contributed to creating the iconic Baguette—one of the defining 'it bags' of the 1990s. Chiuri's career took off when she partnered with longtime collaborator Pierpaolo Piccioli. The pair caught the eye of Valentino Garavani and, in 1999, were entrusted with designing accessories for Valentino. Following the brand's acquisition by investment firm Permira in 2007 and the retirement of its founder, Chiuri and Piccioli stepped into the roles of co-creative directors for accessories. By late 2008, they were promoted to oversee all of Valentino's fashion collections. Their tenure saw the rise of the Rockstud pump, which became a global sensation. Under their leadership, Valentino experienced renewed energy, capturing the attention of younger consumers and gaining critical acclaim. When Qatari investment firm Mayhoola acquired the brand in 2012, Chiuri and Piccioli continued modernizing the house. By 2015, Valentino was nearing €1 billion in annual revenue. In 2016, Chiuri made history as the first woman appointed as artistic director of Dior. From her debut, she used fashion as a vehicle for feminist expression. Her runway shows regularly featured bold slogans such as 'We Should All Be Feminists' and 'Sisterhood Is Powerful.' While honoring Dior's storied heritage, Chiuri infused the brand with a contemporary edge, designing refined, wearable pieces that resonated with younger audiences. As she explained after her first show, her mission was 'to be attuned to the world and to create fashion that reflects today's women. Fashion that supports them through change, helping them break free from stereotypes.' In 2019, Chiuri received the title of Chevalier of the French Legion of Honor—one of several accolades that mark her influential career.
Fashion Network
18 hours ago
- Fashion Network
Zegna announces multi-year partnership with Art Basel
Fashion continues to forge ever closer links with art and Italian high-end business Zegna has just unveiled a global multi-year partnership with Art Basel, 'marking a significant new chapter in the brand's long-standing dedication to contemporary art and cultural dialogue'. It said the collaboration reinforces its 'commitment to supporting artists and artistic institutions that explore the intersection of creativity, community, and nature'. The partnership is said to mark 'a pivotal moment, offering a global platform to celebrate art that resonates with Zegna's values of environmental stewardship, cultural consciousness, and social engagement. For the first time, Zegna is ready to bring visibility to a long-protected legacy — not to brand it, but to let it blossom'. The brand will be present across all four Art Basel fairs — Basel, Miami Beach, Paris, and Hong Kong — and will create curated experiences that 'spark dialogue between art, design, and responsible entrepreneurship'. Also key is 'Visible', a project initiated by Cittadellarte – Fondazione Pistoletto and Fondazione Zegna, which supports socially engaged artistic practices through a pioneering fellowship model. Vincenzo De Bellis – Art Basel Director, Fairs and Exhibition Platforms – will join the Visible Steering Committee. The family-owned company's founder Ermenegildo Zegna always intended the label to have strong art links and saw art as one of his primary sources of inspiration. A century ago, he began commissioning local Italian artists to enrich the town of Trivero and the original wool mill at the heart of what is today known as Oasi Zegna, a 100 sq km natural territory in the Italian Alps. And the brand has continued to commission site-specific public artworks by artists like Daniel Buren, Dan Graham, and Roman Signer, while globally, it has extended this vision by inviting artists like Graham Sutherland, Not Vital, and Kiki Smith to create bespoke wool trophies, symbolising the brand's legacy in textile innovation. Next month, during Art Basel in Basel, Zegna will present the recipients of the 2025 Visible Situated Fellowships, spotlighting artists and collectives across the world who use their work to address today's most urgent environmental and social challenges. The company's chairman and CEO Gildo Zegna said: 'For over a century, our family has believed in the power of art to elevate places, enrich lives, and shape culture. This partnership with Art Basel and Cittadellarte is a natural evolution of that belief — a way to honour our legacy while looking forward. We see art not as embellishment, but as an agent of change. By supporting socially engaged artists through the 'Visible' project, we're reinforcing our commitment to a future where creativity, community, and responsibility can thrive together.'
