Basicnet reported a 14.6 percent increase in its direct sales and those of its licenses in the first nine months of the year to €315.7 million, driven by strong growth in the Asia-Pacific region. On a currency-neutral basis, sales were up by 15.6 percent.
Turnover was up in all regions, with sales rising by 7.5 percent to €219.6 million in the European Union (EU), by 2.6 percent to €13.4 million in European countries outside the EU, by 13.8 percent to €9.2 million in the Americas, by 66.9 percent to €51.3 million in Asia-Pacific, and by 15.7 percent to €22.2 million in the Middle East and Africa.
Consolidated direct sales achieved by the group dropped by 6.8 percent to €96.1 million as the group showed caution regarding sales to multi-brand retailers, due to insolvency risks. Last year's sales were also inflated by onetime private-label sales.
Sales by the group's mono-brand network jumped by 24.0 percent thanks to new openings and a 3.0 percent rise in comparable store sales. The group opened 48 stores in Italy during the nine-month period. Another five stores were opened in October, bringing the total to 233 locations.
Royalties and sourcing fees were up by 13.3 percent to €27.4 million. At constant rates, revenues were up by 14.7 percent.
The gross margin decreased to 36.8 percent in the first nine months from 41.5 percent a year earlier. The net profit fell to €6.1 million from €10.3 million.
The company managed to reduce its net debt to €69.6 million at the end of September from €79.2 million at the end of December. Basicnet pursued the repurchase of shares and owned 4.1 percent of its capital.
The group said the business environment is too uncertain to release guidance on its own results, but expectations are positive regarding the activity of its licensees.