May 19, 2023
Benetton continued its recovery in 2022, following the decline it experienced during the pandemic. The Italian apparel group achieved 1 billion euros in revenue (1.004 billion) last year, while increasing its gross operating margin and reducing its losses, as stated in its annual report. The company also announced the appointment of Micaela Le Divelec Lemmi, former CEO of Ferragamo, as a non-executive board member.
The group has confirmed its path to recovery, in line with its industrial plan for 2026. After witnessing a decline in revenue from 1.148 billion euros in 2019 to 707 million during the Covid-19 pandemic in 2020, Benetton experienced a 19% sales growth in 2022 compared to 2021, reaching 847 million euros. This growth occurred “despite a particularly complex global context,” as highlighted by the company. The flagship brand of the group, United Colors of Benetton, reported net sales of 895 million euros, while its Sisley line achieved a turnover of 109 million euros last year.
From a profitability standpoint, Benetton is also making progress. The company’s gross operating profit (EBITDA) has reached 103 million euros, a significant increase of nearly 70% compared to the 61 million euros in 2021. In 2020, the group had recorded a gross operating loss of 258 million euros. However, there is still a net loss of 81 million euros, although it has decreased compared to the loss of 112 million euros incurred a year earlier and the loss of 138 million euros in 2019.
“We are extremely pleased with the achieved results. 2022 has been a significant year in which we confirmed the trend of double-digit growth that started in 2021 and has continued into the first months of 2023,” noted CEO Massimo Renon. He attributed these results to the “projects undertaken in the past two years, including the vertical integration of the production platform, the new automated warehouse, the streamlining of the distribution network, as well as the new creative direction and numerous image and communication initiatives.” Since July 2022, the brand’s creative direction has been entrusted to designer Andrea Incontri.
The sales in 2022 are primarily attributed to “the performance of retail networks, both physical stores and e-commerce,” as stated in the company’s press release. United Colors of Benetton operates 3,383 branded stores, while Sisley has 376. The company has seen an increase in its directly managed retail outlets, rising from 1,265 to 1,359 within a year. The flagship brand of the group has also implemented a strategy of opening pop-up stores, as exemplified by the temporary store in Milan during Design Week, coinciding with the launch of its first home line, Casa Benetton, created in partnership with Austrian specialist Bergner Group.
The online sales platform notably experienced growth last year. E-commerce now accounts for 12% of the company’s total revenue, amounting to 119 million euros, representing an 11% increase compared to 2021. “Online sales accounted for 3% in 2019. The goal is to reach 30% by 2025,” explained Massimo Renon in the 2022 annual report.
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