Combining direct sales and royalties on licenses, Basicnet registered aggregate revenues of €119 million in the nine months ended Sept. 30, down from €123.5 million a year earlier, and consolidated net profit of €2.3 million, down from €6.1 million a year earlier.

The Italian sportswear company owns many trademarks including Kappa, Robe di Kappa, Superga, K-Way, Lanzera, Anzi Besson, Jesus Jeans and Sabelt.

Revenues from the network for the group's licensees rose by 3.8 percent to €327 million. Royalty income and sourcing commissions brought in €31.3 million, 14.3 percent more than a year ago.

Consolidated direct sales amounted to €87.7 million in the quarter, down by 8.8 percent from the year-earlier period, due to lower consumer spending in Italy and the transformation of some of the revenues, especially those in the Russian market, from distribution to licensing. On an aggregate basis, the rate of decline was limited to 5.9 percent.

Sales were particularly satisfactory in emerging markets, with the Middle East and Africa posting a 33.2 increase. Sales in the Americas grew by 25 percent. In Europe, revenues registered a 1.3 percent increase, while sales were flat in Asia and Oceania.

The group's operating margin was 6.95 percent, down from 11.70 percent in the year-ago period. Earnings before taxation (Ebit) were €6 million, down from €11.2 a year earlier. The gross margin was 36.2 percent compared with 36.6 percent.

Sales from single-brand shops grew by 10 percent in the latest quarter, as 47 new stores were added to Basicnet's Italian retail network in the first nine months of this year, including 11 former Fashion Network factory outlet stores and outlets, bringing the total number of doors to 305.

During the nine-month period, Basicnet committed to the strengthening of its presence on the Italian market. Toward this end, the group implemented a new computer system platform for the management of its sales outlets. It now plans to accelerate the opening of new directly operated stores, as part of a strategy to combine industrial and retailing resources.