Jil Sander on track despite losses

Despite increased losses and declining sales last year, chief executive Gian Giacomo Ferraris says Jil Sander AG will be able to post a positive operating profit this year. Consolidated net losses dropped to €37.3 million from €29.6 million in 2004. The company blamed one-time restructuring costs, however it did not manage to cut losses the following year. This year, however, it is confident it will reach its target. Sales in 2005 fell 5.2 percent to €130.4 million, although the company said sales were strong in the Far East and the US. According to Ferraris the restructuring initiatives at Jil Sander, which include transferring operations from Germany to Italy, have taken longer than he had hoped. However, he is very optimistic about creative director Raf Simons’ debut collections and is confident about the future, which includes a new London store opening in September.