Initially at the beginning of the year I don’t know if I’d have bet on a 10% increase in turnovers to 7.1 million and on a 20% growth in orders of the P-E 2016,said Stone Island Chairman Carlo Rivetti. “Furthermore, even profitability improves, with an EBITDA going from 13% in 2014 to 15% this year
Rivetti starts with the novelty of retail when discussing the brand’s most important milestones of 2015. Once again the outcomes have exceeded expectations, with higher growth rates than those of most casualwear brands.
“The United States and New York specifically have been revenue accelerators of the brand and of its image: because of this, we decided to put money into the primary American flagship store starting with New York, but we are also looking at Los Angeles,he said.
Another sign of optimism comes from Italy, which absorbs 35% of turnovers and where orders for the next Summer season have gone up by 11%.
“Two and a half years ago we were very close to selling the corporate, but after two long negotiations we decided to go forward alone. From that moment however, we’ve accelerated both on retail as well as on foreign development,he said. “We were told that we were not global enough and we might have to join a large group. Our response could be measured within the goals we achieved in 2015, which included five store openings, four of which abroad: Hamburg, Amsterdam, Antwerp and New York, and a plan for expansion in the European countries through which we have already got a powerful presence, just like the UK, Germany, and Benelux, and an additional investment within the US. In 2016 we are going to open in Los Angeles, with a format that may be a midway point between a store and an exhibition space, with the intention to introduce our more than 30 years of history
The divide between the Fall-Winter catalogue (58% of revenues) and the Spring-Summer catalogue is increasingly balanced and the role of direct retail is increasingly important.
“In Italy in 2015 we opened in Turin and went at full capacity in Rome, where we inaugurated at the tip of 2014. We are continuing to look for an even bigger location in Milan: the store in Corso Venezia, which has existed since 2000, continues to have a fantastic sell-out and is in a very good location, but we’d like extra space, in part to be able to use the concept used for the flagship store abroad. However, despite the crisis in recent times, rent prices haven’t gone down, and on this regard we really cannot compete with the big groups of fashion and luxury
On a comparable basis, the sales in flagship stores, compared to 2014, have increased by 12%, but the share goes up to 21% with the five openings in 2015 and e-commerce went well (+26%), absorbing 3% of sales. Furthermore, the American project can help to open up a road towards Asia and in particular China, where Stone Island still shouldn’t be present.