PARIS, Oct 6 — Italy’s Valentino Fashion Group does not have any problems in repaying its debt at this time, Chief Executive Stefano Sassi said, adding that its Valentino brand is seeing growing sales in US department stores.
Speaking to Reuters after the Valentino spring/summer 2010 womenswear show in Paris, Sassi said the group’s next debt repayment is in 2015.
Valentino Fashion Group includes the Valentino, Hugo Boss and Marlboro labels.
“We don’t have a problem of repaying debt at this time. It is something that is long-term,” Sassi said.
At the end of last year, Valentino Fashion — bought by private equity group Permira in 2007 — had net debt of about 2 billion euros (RM7.6 billion).
A US media report last month said Valentino was having trouble paying back its debt and that creditor Citigroup was getting impatient. Citi at the time declined to comment.
Sassi said it was still too early to say how the group would close the year, adding that the market is still volatile.
Luxury brands have also been hit by the financial crisis, with rich shoppers reining in on their spending for designer goods.
In 2008, Valentino Fashion increased turnover 3 per cent to 2.2 billion euros while core profit slipped to 320.4 million euros from 330.3 million euros.
“The whole sector is suffering; us, too. Compared to last year, (this year) will be less good in terms of turnover and profits — this is the general rule for everyone,” Sassi said.
“The idea is to come out of this crisis stronger.”
Sassi added that sales of the Valentino brand in US department stores are going better than last year. “We are growing,” he said. “We are doing well compared to the market average; this is a positive and interesting indication for us.” Valentino’s founder, Valentino Garavani, retired in January 2008 after heading the house for nearly half a century and making its trademark red evening gowns regulars on the red carpets at the Oscars, Cannes film festival and elsewhere.
His successor, Alessandra Facchinetti, lasted less than a year before leaving “embittered.” She was replaced by in-house team Maria Grazia Chiuri and Pier Paolo Piccioli.
Yesterday they showed short feminine dresses with ruffles and dramatic bows at the back, see-through lace trousers worn with sandals and heels that had their own imaginative bows.
“Today was a step ahead in creating a new vision of the Valentino brand,” Sassi said.
He said the group is opening Valentino stores in Asia — Singapore, China and Japan. “These are not great times to open shops, but we are going ahead with what needs to be done.” — Reuters
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