Versace back to black

Versace is back in the black. The Italian fashion house has been restructuring its business,

cutting costs and focusing on new markets and for the first time in years the company's balance sheet showed net profits of €8.5m for 2011 against a loss of €21.7m in 2010.

Gian Giacomo Ferraris, the chief executive, instigated cost-cutting and a restructure when he joined in 2009, and slashed its €80m debts. Revenues jumped 16.4 per cent to €340.2m in 2011 from €292.3m in the previous year and underlying earnings shot up 73 per cent to €38.7m.

Mr Ferraris said: "These results confirm the global appeal of the Versace brand, and the success of our strategy. During 2011, we took back the Versus license, we launched new lines of business and we invested in haute couture with Donatella's spectacular return to showing in Paris earlier this year. Additionally, we re-entered the Japanese market, which we believe is a significant opportunity for the group's brands."