Benetton back in profit
Italian fashion retailer sees benefits of Sportsystem sale
Benetton saw a return to profit in 2003, after selling its underperforming sportswear retail chain Sportsystem.
The Italian clothing retailer has reported net profit of €108m for the year, compared to a to a €10m loss in 2002.
The company, which sold Sportsystem a year go, said factoring out the effects of the sale and currency fluctuations, it saw a 1.2 per cent increase in clothing sales across the year.
For 2004. Benetton is predicting cautious consumer spending in the clothing market and expects profit to be in line with 2003. It expects net profit to be about 7 per cent of total sales, which it is forecasting at €1.8bn.
The company plans to invest about €100m this year in expanding its sales network. Benetton operate around 5,000 stores worldwide.
