By
Reuters
Published
Aug 2, 2010
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Benetton H1 net rises, keeps 2010 outlook

By
Reuters
Published
Aug 2, 2010

MILAN, July 30 (Reuters) - Italian clothing retailer Benetton (BNG.MI) stuck to its cautious outlook for the year, after cost savings and growth in emerging markets fuelled first-half net profit.

Benetton
Benetton autumn-winter collection 2010/11


Benetton said new orders for the fall-winter collection showed "continuing weakness" in its main markets.

The maker of colourful sweaters said revenues rose 1 percent to 891 million euros in the six months to June, citing continued uncertainty in the group's main markets, including Europe.

"Expected trends in the second half of 2010 confirm estimates for the current full year of a slight reduction in operating margins compared with 2009 levels," Benetton said.

It said higher borrowing costs and a tax rate increase would hurt full-year margins.

British retailer Marks & Spencer (MKS.L) said this month its quarterly sales rose at a slower pace, joining rivals in sounding cautious about the consumer outlook.

Emerging markets such as India continued to grow, Benetton said, with sales up 13 percent, while a solid performance in Italy helped offset slowdown Greece and Spain.

The firm said a large part of its fall/winter collection would be delivered in the third quarter to better match seasonal needs from their sales network.

Benetton shares were up 0.93 percent to 5.4250 euros at 1215 GMT, in line with Milan's broader index .FTITLMS.

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