Stone Island’s Sales Are Up 10%, Even Exceeding Its Chairman’s Expectations
However at the beginning of the 12 months I don’t know if I would have bet on a 10% enhance in turnovers to €87.1 million and on a 20% development in orders of the P-E 2016,” stated Stone Island Chairman Carlo Rivetti. “Furthermore, even profitability improves, with an EBITDA going from thirteen% in 2014 to 15% this year”.
Rivetti begins with the novelty of retail when discussing the brand’s most important milestones of 2015. As soon as once more the results have exceeded expectations, with increased development rates than those of most casualwear brands.
“The United States and New York in particular have been income accelerators of the brand and of its image: for that reason, we decided to put money into the primary American flagship retailer beginning with New York, however we are additionally looking at Los Angeles,” he stated.
Another sign stone island red overshirt of optimism comes from Italy, which absorbs 35% of turnovers and where orders for the next Summer season season have gone up by eleven%.
“Two and a half years ago we were very close to promoting the company, but after two long negotiations we decided to go forward alone. From that moment nevertheless, we’ve accelerated both on retail as well as on international improvement,” he said. “We have been told that we weren’t international sufficient and we might have to join a big group. Our response might be measured in the objectives we achieved in 2015, which included 5 store openings, 4 of which abroad: Hamburg, Amsterdam, Antwerp and New York, and a plan for growth in the European countries through which we have already got a powerful presence, like the UK, Germany, and Benelux, and an extra investment in the US. In 2016 we’ll open in Los Angeles, with a format that may be a midway level between a store and an exhibition area, with a purpose to introduce our more than 30 years of history”.
The divide between the Fall-Winter catalogue (fifty eight% of revenues) and the Spring-Summer catalogue is increasingly balanced and the function of direct retail is increasingly essential.
“In Italy in 2015 we opened in Turin and went at full capability in Rome, the place we inaugurated at the top of 2014. We’re persevering with to look for a much bigger location in Milan: the store in Corso Venezia, which has existed since 2000, continues to have a fantastic sell-out and is in an excellent location, however we need more space, partially to be ready to use the concept used for the flagship retailer abroad. Nonetheless, regardless of the crisis in recent times, rent prices have not gone down, and in this regard we actually can’t compete with the big groups of trend and luxury”.
On a comparable basis, the sales in flagship stores, in comparison with 2014, have elevated by 12%, however the percentage goes as much as 21% with the 5 openings in 2015 and e-commerce went nicely (+26%), absorbing 3% of gross sales. Moreover, the American project can assist to open up a road towards Asia and particularly China, where Stone Island nonetheless will not be current.