Versace's IPO Is Once Again On The Agenda.

Although Italy

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Revenue continued to grow last year, but profitability continued to decline, but the group said it still had confidence in the brand's development strategy and future growth potential.

According to the world clothing and shoe net, Versace sales increased by 3.7% to 669 million euros in the 12 months ended December 31, 2016, and the profit before depreciation and amortization dropped 45% to 44 million 300 thousand euros compared to the same period. It also recorded a net loss of 7 million 400 thousand euros, while the net profit of Versace in the 2015 fiscal year was 15 million 300 thousand euros.

However

It is emphasized that sales of all product categories and channels have increased during the period, especially in the Asia Pacific region.

In order to improve the business of Versace retail sector, brand investors invested a total of 45 million euros last year to reorganize the management team of the sector to help Versace clear its strategic direction and position to achieve growth.

According to the report data, Versace retail sales increased by 4.3% to 418 million euros last year.

As of the end of the reporting period, Versace has 200 direct outlets worldwide, and retail has become the main engine of Versace growth.

According to statistics, Versace group's revenue reached 645 million euros in 2015, an increase of 17.5% compared with 548 million 700 thousand euros in 2014. After excluding the favorable effects of euro weakness, the group achieved 8.6% growth.

Asia's growth of over 40% has increased by 15.9% in North America.

Versace group's core profit EBITDA rose 19.9% to 81 million euros per year.

Compared with 2016 data, Versace's performance growth has begun to slow down.

Due to the decrease of tourists in Europe due to the security problem, the demand in the region has been reduced. Due to the difficulties of luxury fashion retailing, the group thought that Versace's Chinese business had not been well developed, especially in the Hongkong market.

Versace was founded in 1978 and has been under the guidance of Donatella Versace, director of art since 1997.

The company designs, produces and distributes fashion and lifestyle products, including high fashion, men's and women's wear, jewelry, watches, accessories, perfume and hotels.

Its own Versace, ISTANTE, VERSUS, V2, VERRY and children's wear YOUNG VERSACE and other brands.

In 2014, the Versace family sold 20% of the group's shares to Blackstone Group to support global expansion, and plans to carry out IPO in 3 to 5 years, but hopes to continue to maintain its main control over the group after listing.

After Blackstone acquired Versace group 20%, the latter valued more than $1 billion 130 million.

Donatella Versace has said that Stephen Schwarzman, chief executive of Blackstone Group, has established five strategic points for the purpose of focusing on Versace's listing.

Versace currently has more than 30 stores in the mainland of China.

Influenced by China's anti-corruption environment and high tariffs, the brand is conservative in its new store.

Some analysts pointed out that the IPO plan, which was put forward in 2014, has passed 3 years. Next, Versace may accelerate the application process of IPO.

Previously, the group has said that Versace may choose to conduct IPO in the US or Asia.

Some analysts say that Versace is going through a difficult period.

In May last year, Versace made great changes to management, inviting Alexander McQueen's former CEO Jonathan Akeroyd to replace Gian Giacomo Ferraris to become the brand's new CEO.

Donatella Versace said at that time that Jonathan Akeroyd is an excellent brand management talent with rich management experience in retail and men's wear. This is the key to increasing brand global influence for the group.

Earlier, it was reported that Versace intended to take away Riccardo Tisci from Givenchy at the beginning of this year, but the latest news indicates that the cooperation between the two sides is likely to die out because it fails to confirm whether Riccardo Tisci has signed a competition agreement with the Givenchy on departure.

In order to save operating costs, Versace has announced that it will no longer participate in the Paris advanced fashion week. Chief executive officer Jonathan Akeroy revealed that the brand needs to hold 6 shows a year. Because of its poor performance, the high cost customized fashion week has become a big burden for Versace.

Donatella Versace also admitted that next will focus on the development of men's wear series.

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