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MIRA INFORM REPORT
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Report Date : |
25.11.2011 |
IDENTIFICATION DETAILS
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Name : |
VALENTINO FASHION GROUP SPA |
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Registered Office : |
Via Turati 16/18, Milano, 20121 |
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Country : |
Italy |
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Year of Establishment : |
2005 |
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Com. Reg. No.: |
Not Available |
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Legal Form : |
Public Subsidiary Company |
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Line of Business : |
Design, production and
sale of fashionwear |
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No. of Employees
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13,081 Persons |
NOTES :
Any query related to this report can be made
on e-mail : infodept@mirainform.com
while quoting report number, name and date.
ECGC Country Risk Classification List – September 30th, 2011
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Country Name |
Previous Rating (30.06.2011) |
Current Rating (30.09.2011) |
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Italy |
a2 |
a2 |
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Risk Category |
ECGC
Classification |
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Insignificant |
A1 |
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Low |
A2 |
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Moderate |
B1 |
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High |
B2 |
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Very High |
C1 |
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Restricted |
C2 |
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Off-credit |
D |
Company name & address
Valentino Fashion Group SpA
Via Turati 16/18
Milano, 20121
Italy
Tel: 39 (02) 624921
Fax: 39 (02) 62492584
Web: www.valentinofashiongroup.com
synthesis
Employees: 13,081
Company Type: Public Subsidiary
Corporate Family: 41
Companies
Ultimate Parent: Permira Holdings Ltd
Incorporation Date: 2005
Auditor: KPMG
Financials in: USD
(Millions)
Fiscal Year End:
31-Dec-2009
Reporting Currency: Euro
Annual Sales: 645.1
Total Assets: NA
Business Description
Design, production and sale of fashionwear
Industry
Industry Apparel and Accessories
ANZSIC 2006: 1351 - Clothing
Manufacturing
NACE 2002: 1822 - Manufacture
of other outerwear
NAICS 2002: 315234 - Women's
and Girls' Cut and Sew Suit, Coat, Tailored Jacket, and Skirt Manufacturing
UK SIC 2003: 18222 -
Manufacture of other women's outerwear
US SIC 1987: 2337 - Women's,
Misses', and Juniors' Suits, Skirts, and Coats
Key Executives
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Name |
Title |
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Mitsuyasu Matsumi |
Chief Executive Officer - Valentino Japan |
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Paolo Riva |
Product Marketing Manager |
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Rossana Bianchi |
Retail Manager - Europe |
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Michele Paolillo |
Statutory Auditor |
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Marco Sani |
Operating Manager - Footwear & Leather Accessories |
News
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Title |
Date |
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The Drapers
Interview - Michele Norsa |
11-Mar-2011 |
1 - Profit & Loss Item Exchange Rate: USD 1 = EUR 0.7190468
2 - Balance Sheet Item Exchange Rate: USD 1 = EUR 0.6969855
Corporate Overview
Location
Via Turati 16/18
Milano, 20121
Italy
Tel: 39 (02) 624921
Fax: 39 (02) 62492584
Web: www.valentinofashiongroup.com
Sales EUR(mil): 463.9
Assets EUR(mil): NA
Employees: 13,081
Fiscal Year End: 31-Dec-2009
Industry: Apparel
and Accessories
Incorporation Date: 2005
Company Type: Public
Subsidiary
Quoted Status: Not
Quoted
Managing Director: Stefano
Sassi
Contents
· Industry Codes
· Business Description
· Brand/Trade Names
· Financial Data
· Subsidiaries
· Key Corporate Relationships
Industry Codes
ANZSIC 2006 Codes:
1351 - Clothing Manufacturing
3712 - Clothing and Footwear Wholesaling
NACE 2002 Codes:
1823 - Manufacture of underwear
5142 - Wholesale of clothing and footwear
1822 - Manufacture of other outerwear
NAICS 2002 Codes:
424320 - Men's and Boys' Clothing and Furnishings Merchant
Wholesalers
315223 - Men's and Boys' Cut and Sew Shirt (except Work Shirt)
Manufacturing
315232 - Women's and Girls' Cut and Sew Blouse and Shirt
Manufacturing
315234 - Women's and Girls' Cut and Sew Suit, Coat, Tailored Jacket,
and Skirt Manufacturing
315224 - Men's and Boys' Cut and Sew Trouser, Slack and Jean
Manufacturing
US SIC 1987:
2331 - Women's, Misses', and Juniors' Blouses and Shirts
2337 - Women's, Misses', and Juniors' Suits, Skirts, and Coats
5136 - Men's and Boy's Clothing and Furnishings
2321 - Men's and Boys' Shirts, Except Work Shirts
2325 - Men's and Boys' Separate Trousers and Slacks
UK SIC 2003:
18221 - Manufacture of other men's outerwear
18232 - Manufacture of women's underwear
18231 - Manufacture of men's underwear
18222 - Manufacture of other women's outerwear
5142 - Wholesale of clothing and footwear
Business
Description
Design, production and sale of fashionwear
Brand/Trade Names
Valentino
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Helpful |
Harmful |
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Internal Origin |
Strengths ·
Extensive
Range Across The Fashion Spectrum |
Weaknesses |
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External Origin |
Opportunities ·
Growing
Trend of Online Retailing |
Threats |
Overview
Valentino Fashion Group S.p.A (Valentino) is a retailer of fashion apparel. The company is engaged in the sale of fashion and luxury clothing, accessories, and footwear for men and women. The strong performance of Hugo Boss, wide assortment of products and high visibility of brands are its competitive strengths. Its seasonal business in nature could hamper its business growth. The company’s future growth is ensured by growing footwear market, business expansions and increasing online opportunities. However, its future growth may be hindered by increasing labor costs and weak European market.
Strengths
Extensive Range
Across The Fashion Spectrum
Valentino sells a rich and well-diversified portfolio of fashion products, including clothes, accessories, and footwear for men and women. The group offers an array of complementary brands characterized by a consolidated global presence, excellent brand awareness, and strong product recognition. The group, through its wide range of brands, covers the entire luxury and fashion sector. It offers its products, under several brands, namely, Valentino, Hugo Boss, Proenza Schouler, M Missoni, Marlboro Classics, Lebole, Oxon and Portrait. Under Valentino brand, the company offers wedding dresses, eyewear, watches, fragrances for men and women, and licensed products. Hugo Boss product line consists of women’s and men’s clothing collections, shoes, leather goods, watches, eyewear and fragrances. Under Marlboro Classics brand, the company sells a wide range of leather goods, shoes, belts, bags and other accessories. Wide range of products helps the company to serve to a more diverse range of customers, thereby generating more revenues.
Strong Performance of
Hugo Boss
The Group, under Hugo Boss, operates in the international fashion and luxury market under BOSS and HUGO brands. The brand’s product line consists of both formal and casual wear, shoes, leather goods, watches, eyewear and fragrances at various price levels, in order to appeal to a broader, more diverse clientele. Under BOSS brand, the group sells high quality women swear and menswear for all occasions. BOSS’s brand line includes BOSS Black, BOSS Selection, BOSS Orange and BOSS Green, through which BOSS sells a wide range of styles, from formal suits to casual wear, eveningwear and other related products. For the fiscal year ending December 2008, Hugo Boss generated revenues of €1,686.1 million, an increase of 3.3% over the previous year, constituting over 76% of the total company’s revenue.
High Visibility of
Brands Across the World
Valentino brands are highly visible in over 110 countries, with more than 1,600 single-brand boutiques and 433 directly-managed shops. The group’s brands also operate through shop-in-shops and other retail outlets. Under Valentino brand, the group operates 74 directly operated stores and has presence in 1,948 shops. Hugo Boss products are sold through 6,130 shops located in over 110 countries. Through M Missoni, the group operates 1,209 retail outlets located in 41 countries. The group’s brand, Marlboro Classics is found in over 2,400 shops, 440 shop-in-shops and 200 exclusive stores, 22 of which are DOS, throughout 42 countries. With such high visibility and market presence, the company can expect to benefit from economies of scale and high customer loyalty.
Weaknesses
Seasonality of the
Business
The group’s business is highly seasonal in nature, causing heavy dependency on second and third quarter for generating good amount of revenues. Anticipating a huge demand during Christmas, Easter, Children’s’ Day, Back to School and Mothers’ Day, the company needs to purchase substantial amounts of inventory in the previous quarter, thereby incurring huge costs. The changing consumer trends also make the products obsolete, thereby forcing the group to sell those goods at discount resulting in low margins. However, any decline in the sales activity of these goods in the peak seasonal quarters may lead to huge loss to the company as it becomes difficult for the group to realize the sales in other quarters.
Opportunities
Growing Trend of
Online Retailing
The company has an opportunity to drive its sales amidst the rising trend of online retailing in Europe. Apart from retailing through its store, it also sells its merchandise through its website, www.hugoboss.com. Hence, it can make the maximum utilization of this opportunity and markets its presence across the globe. Thus, with the increase in internet penetration in Europe, the company can enhance its revenues. According to Internet World Stats as on June 2009, the internet penetration in the Europe is about 52% of the total population and the user growth has been 274.3% in the period from 2000 through 2008. In addition, in all the major market, where the company operates such as Italy, Germany, and the UK, the internet penetration is increasing. The internet penetration in these countries stands at 51.7%, 65.9%, and 76.4% respectively.
Geographic Expansion
in Emerging Markets
The company can foster its growth through expansion into other regions. As, the company already has a strong presence in Europe, it can further broaden its customer base, by entering developing markets. With the economic slowdown in the advanced countries, the expansion of stores into developing markets might prove to be beneficial for the company in terms of higher revenue generation and protection against the setbacks in the European markets. In addition, it can also take benefit of the increasing disposable incomes in these developing markets. According to IMF, the emerging markets are estimated to grow by 3.3% in 2009, with most of the advanced economies are estimated to show a negative growth. Additionally, factors like growing affluence, increasing brand-consciousness and low penetration of organized retailers in these countries make them attractive destinations for global retailers.
Strong Growth in
Footwear Market
Being an apparel and footwear retailer, the company has a huge potential to cash in on the favorable consumer trend. With the rising popularity of footwear products, the global footwear market has been witnessing an upward trend over the past few years. According to Global Industry Analysts, Inc. (GIA) report, the global footwear market is expected to reach USD 192.4 billion by 2010. European markets are likely to be overshadowed by the US and the Asian region in years to come. The Asia Pacific region has been experiencing the fastest growth with an expected CAGR of 4.8% during the period 2001-2010. So, the company should look forward to expand its operations in the Asia Pacific region to enjoy the high growth potential. With the company’s strong market presence and brand equity, the company can expect good growth.
Threats
Weak European Market Outlook
The company faces
a major challenge in sustaining its revenue growth due to the economic slowdown
in the European economy caused mainly due to the global crisis. As a result,
the banks have tightened their credit lending process thereby affecting the
consumers’ shopping activity. Even the market volatility concerns have made
them shop only for basic and essential goods, thereby creating a major
challenge for the fashion goods industry, whose sales have been witnessing a
major decline. The IMF slashed its 2009 growth forecast for the 16-member Euro
zone by another 1 per cent to 4.2 % with the currency bloc managing to pull
back to a 0.4% decline in 2010. The Euro zone unemployment is set to rise to
10.1% from 7.6% in 2008 before edging up to 11.5% in 2010.
Rising Manpower Costs
Increasing
manpower costs may have an adverse affect on the retailers, such as the company,
which employs over 13,000 people across its business locations. With the
shortage of talented manpower and increasing government mandated minimum wages,
the labor costs in the developing countries also have been witnessing an
increase. A significant portion of the workforce, falling under the purview of
minimum wages, work in the retail sector. According to the Federal Statistical
Office, the cost of one hour worked in Europe increased by 5.8% in the first
quarter of 2009, as compared to the first quarter of 2008. Such hike in
employee cost may increase the company's operational cost and also, lead to
lack of funds for expansion and other purposes.
Intense Competition
Intense competition
may adversely affect the company’s sales and operational results. The company
competes on various factors such as quality, price, value, merchandise
selection and freshness, brand name recognition, service, reputation and store
location. It faces an intense competition from e-retailers, apparel and
footwear retailers such as Benetton, Ross Stores, Groupe Vivarte, Arcandor AG
and Tengelmann Group. This intense competition can force the company to
additionally spend on promotions and advertisements. Thus, the company may face
a threat from such competitors who possess more financial resources in
comparison to it.
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Corporate
Family |
Corporate
Structure News: |
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Valentino Fashion Group SpA |
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Company Name |
Company Type |
Location |
Country |
Industry |
Sales |
Employees |
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Permira Holdings Ltd |
Parent |
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Subsidiary |
London |
United Kingdom |
Business Services |
85.0 |
15 |
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Acquisition of Genesys Telecommunications
Labs proposed/announced.See corporate
structure news on
Permira Holdings Ltd for details Acquisition of BakerCorp
proposed/announced.See corporate
structure news on
Permira Holdings Ltd for details |
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Subsidiary |
Milano |
Italy |
Apparel and Accessories |
645.1 |
13,081 |
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Subsidiary |
Tokyo |
Japan |
Chemical Manufacturing |
131.6 |
2,300 |
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Subsidiary |
Tokyo |
Japan |
Recreational Activities |
25.3 |
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Subsidiary |
Nove Zamky |
Slovakia |
Chemical Manufacturing |
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Subsidiary |
Tel Aviv |
Israel |
Construction and Agriculture Machinery |
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2,000 |
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Recently acquired (previously owned by
Netafim Ltd).See corporate
structure news on
Permira Holdings Ltd for details |
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Subsidiary |
Wisconsin Rapids, WI |
United States |
Software and Programming |
130.1 |
893 |
IUSA |
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Recently acquired (previously owned by
Renaissance Learning, Inc.).See corporate
structure news on
Permira Holdings Ltd for details |
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Branch |
Hood River, OR |
United States |
Retail (Technology) |
18.5 |
54 |
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Branch |
Wisconsin Rapids, WI |
United States |
Computer Hardware |
35.5 |
5 |
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Subsidiary |
Feltham, |
United Kingdom |
Food Processing |
691.6 |
629 |
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Subsidiary |
Feltham |
United Kingdom |
Nonclassifiable Industries |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
39.3 |
66 |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
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Subsidiary |
Frankfurt Am Main, Hessen |
Germany |
Consumer Financial Services |
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35 |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
4.8 |
8 |
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Subsidiary |
London |
United Kingdom |
Miscellaneous Financial Services |
4.8 |
8 |
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Subsidiary |
London |
United Kingdom |
Motion Pictures |
569.1 |
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Subsidiary |
Amsterdam |
Netherlands |
Advertising |
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75 |
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Subsidiary |
Amsterdam, Noord-Holland |
Netherlands |
Motion Pictures |
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34 |
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Subsidiary |
Amsterdam, Noord-Holland |
Netherlands |
Business Services |
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6 |
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Subsidiary |
Manchester |
United Kingdom |
Nonclassifiable Industries |
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Subsidiary |
Manchester |
United Kingdom |
Nonclassifiable Industries |
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Subsidiary |
Manchester |
United Kingdom |
Nonclassifiable Industries |
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Subsidiary |
Manchester |
United Kingdom |
Nonclassifiable Industries |
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Subsidiary |
Manchester |
United Kingdom |
Nonclassifiable Industries |
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Subsidiary |
Manchester |
United Kingdom |
Business Services |
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Subsidiary |
Manchester |
United Kingdom |
Nonclassifiable Industries |
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Executive report
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Board of
Directors |
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Chairman |
Chairman |
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Director |
Director/Board Member |
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Director |
Director/Board Member |
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Director |
Director/Board Member |
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Director |
Director/Board Member |
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Director |
Director/Board Member |
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Director |
Director/Board Member |
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Statutory Auditor |
Director/Board Member |
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Statutory Auditor |
Director/Board Member |
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Statutory Auditor |
Director/Board Member |
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Director |
Director/Board Member |
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Executives |
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Chief Executive Officer - Valentino Japan |
Chief Executive Officer |
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Chief Executive Officer - Valentino Asia-Pacific |
Chief Executive Officer |
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Managing Director |
Managing Director |
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Statutory Auditor |
Accounting Executive |
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Statutory Auditor |
Accounting Executive |
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Statutory Auditor |
Accounting Executive |
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Product Marketing Manager |
Marketing Executive |
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Retail Manager - Europe |
Merchandise Management Executive |
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Operating Manager - Footwear & Leather Accessories |
Other |
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Significant
Developments
There were no significant developments matching your query for KeyID 51002621
FOREIGN EXCHANGE RATES
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Currency |
Unit
|
Indian Rupees |
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US Dollar |
1 |
Rs.52.25 |
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UK Pound |
1 |
Rs.81.23 |
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Euro |
1 |
Rs.69.83 |
RATING EXPLANATIONS
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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56-70 |
A |
Financial & operational base are regarded healthy. General
unfavourable factors will not cause fatal effect. Satisfactory capability for
payment of interest and principal sums |
Fairly Large |
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41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
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26-40 |
B |
Capability to overcome financial difficulties seems comparatively below
average. |
Small |
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11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
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<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
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---- |
NB |
New Business |
---- |
This score serves as a reference to assess SC’s credit risk and
to set the amount of credit to be extended. It is calculated from a composite
of weighted scores obtained from each of the major sections of this report. The
assessed factors and their relative weights (as indicated through %) are as
follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
This report is issued at your request without any
risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL)
or its officials.