BasicNet Q1 sales increase 4.9 percent

The Board of Directors of BasicNet, in a meeting today chaired by Marco Boglione, reviewed the company’s first quarter commercial performance. Aggregate sales of the group brand products Kappa, Robe di Kappa, Superga, K-Way, Lanzera, Jesus Jeans, Sabelt and Briko of 198.8 million euros increased 4.9 percent on 189.4 million euros in the same period last year. The company posted strong third party licensee sales on the international markets of 108.3 million euros, up 8.7 percent on Q1 2016.

BasicNet said, revenues in America increased 52.2 percent and European turnover rose 9.4 percent, while the Asian and Middle Eastern markets reported contractions due to political instability.

Royalties and sourcing commissions were up 3.1 percent to 12.2 million euros. Sales at the investee BasicItalia and its subsidiary BasicRetail of 37.8 million euros were down 4.6 percent, while retail plug@sell sales, group’s mono-brand stores and outlets in Italy were up 2 percent. These factors led to consolidated revenues, including royalties, sourcing commissions and sales of the Italian licensee BasicItalia to 50 million euros against 51.4 million euros in 2016.

South American market sales rose 75.3 percent

The Kappa and Robe di Kappa brands, with revenues up 10.9 percent on Q1 2016, saw commercial growth of 75.3 percent on the South American market following full operability of new licenses in the region and major commercial development in Brazil and Argentina. The European market performed very strongly with growth of 16.2 percent. The company said, Asian and Middle Eastern and African markets were impacted by a commercial slowdown owing mainly to political instability.

The Superga brand was successful in the Americas with 45.5 percent sales rise, with growth in all countries covered by licenses and specifically: Chile 136.3 percent, USA 53.5 percent, Brazil 94.4 percent and Argentina up over 200 percent. In Europe, the significant growth on the Dutch market of 95 percent and the major recovery of the Greek market, up 66 percent partially offset the slowdown in Turkey - which saw sales drop 68.5 percent - and the contraction on the Italian market (-27.8 percent) related to the restructuring of the customer base and continued domestic demand weakness, resulting in reduced overall sales for the investee BasicItalia.

Overall European sales contracted 10.4 percent. The Asian market, MasicNet said, however slowed on the previous year, mainly due to the Chinese, South Korean and Hong Kong market performances. For the Chinese market, where the local licensee was replaced, a recovery in sales is expected in the second half of 2017. On the other hand, the extension of the distribution network supported the performance on the Indonesian, Australian and Taiwanese markets.

The K-Way brand reported overall commercial growth of 15.5percent with the European market performing strongly (up 20.2 percent), driven by France (up 116.5 percent), Italy (up 16.8 percent) and Belgium (up 28.7 percent).

Picture:Facebook/Kappa Global