Barbara Bui posts losses for 2012
A few weeks after publishing a stable revenue figure of 31.8 million euros for 2012, Barbara Bui announced financial earnings approved by the Board of Directors this Monday March 25. While revenues maintained a steady level, operating income and net income suffered a decline for the second consecutive year. However, for the fiscal year ended December 31, the luxury womenswear brand showed loses this time around, after having managed to remain in the black in 2011.
Operating income showed a negative balance of approximately 1.5 million euros in 2012, even though it was 450,000 euros higher the previous year. Regarding net income for the group’s share, the trend was the same: -1.7 million euros whereas as 2011 finished with a surplus of 300,000 euros. The decline in the gross margin was not as large, from 58.3% in 2011 to 57.9% in 2012.
The French label attributed 2012 losses to auxiliary costs for its investments, particularly related to the opening of its own second U.S. store in Los Angeles last November and an increase in its communication budget.
For 2013, Barbara Bui predicts a decline in sales of approximately 4% for the first quarter. Especially troublesome was an entirely new drop in retail sales of -8%. For the rest of fiscal year 2013, wholesale could continue its improved performance as the brand announced that orders for autumn-winter 2013 are up 11.4% (following a 4% rise for spring-summer 2013).
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