Benetton posts mixed 2005 results

Italian fashion retailer Benetton recorded consolidated revenues of €1.765 million (£1.229 million) for 2005, up from €1.704 million the previous year. Net income rose to €112 million from €109 million in 2004, while the net financial position fell to €351 million from €441 million the year before. The group said revenues growth was boosted by the market's positive reception of the fall/winter 2005 collections and, more significantly, by the contribution derived from the consolidation of the Turkish market and the growth of the Indian and South Korean markets. Also contributing to the rise in revenues was the growth in the network of directly operated stores.

At €643 million, margins slipped from 38.4 percent in 2004 to 36.4 percent, as the company built up its sales network. Operating profit dropped to €205 million or 11.6 percent of revenues, opposed to €225 million or 13.2 percent in 2004. The company said it received numerous orders, indicating a favourable response from partners in various markets. It also said that it expects directly operated store performance to improve during the year. Benetton added that it anticipates 2006 consolidated revenues to be in line with 2005, thanks to an increase in volumes and a greater product mix.