The aggregate sales of BasicNet’s network of licensees rose by 15.0 percent to over €275 million in 2007, thanks in part to a 38.7 percent jump for its Superga brand, according to preliminary data released by the company ahead of a more comprehensive financial report due to be put out on March 28.
In the first nine months of the year, the Italian footwear brand had posted aggregate sales of €23.54 million, up 44.08 percent. BasicNet was the licensee of the brand until it bought it in July for €24 million.
Direct and licensed sales under the Kappa brand increased by 19.5 percent in 2007, says BasicNet, whose other brands are Robe di Kappa, K-Way and Lanzera. Overall aggregate sales rose by 17.0 percent in Europe, while in the Middle East and Africa they were up by 28.6 percent. Direct sales rose by 3.5 percent to €88.8 million.
The core business margin – represented by the operating margin plus the royalties and commissions on sourced - increased by 23.0 percent to €61.2 million. Basic operating earnings before amortization and depreciation (EBITDA) rose to €22.4 million from €8.2 million. After amortization and depreciation, the operating profit (EBIT) jumped to €16.8 million from €2.9 million, but pre-tax earnings slipped to €14.0 million from €28.7 million. Last year’s pre-tax figure was bloated by a €27.1 million gain stemming from the sale of the rights to the Kappa and Robe di Kappa brands for the Chinese mainland and Macao.
In 2007, the group opened 17 RdK stores and one K-Way shop in Italy, boosting the total number of mono-brand stores to 73. Orders are up from one year ago.
Net debt soared to €63.4 million at the end of 2007 from €44.4 million a year earlier due to the acquisition of the Superga brand. BasicNet has 609,936 treasury shares, representing 1 percent of its equity, and intends to continue its share buy-back program.
