The board of directors of BasicNet has announced the brand’s 2014 half-year report. Highlights of the group’s results are aggregate sales of the group’s brands (Kappa, Robe di Kappa, Superga, K-Way, Lanzera, Anzi-Besson, Jesus Jeans and Sabelt) for global licensees of €221 million, +5.8% compared to the first half of 2013, +8% at like-for-like exchange rates.

“We are happy about these results because we achieved a growth in all of the markets where we operated and for all brands,” commented Franco Spalla, CEO, BasicNet, referring to their growth rate registered in Asia and Oceania (+21%), Middle East and Africa (+18%) and in the American markets (+14%). Also significant was the growth gained in Europe and Italy (4.2%). All brands reached growth rates such as, for instance, Superga (+43%), K-Way (+31%), Kappa and Robe di Kappa (7%).

The group’s royalties and sourcing commissions, concerning the parent company and the brand owning companies, reached €19.6 million (€18.4 million in the first half of 2013), up 6.4% at current exchange rates and 7.8% at like-for-like exchange rates. Their consolidated operating profit (EBIT) of €11.4 million improved over 77% compared to €6.4 million of the corresponding period of 2013.

While commenting on the group’s pre-tax profit of €10 million and net profit of approx. €6 million, advancing respectively 130% and 151% on first half of 2013, Spalla commented: “These results are highly satisfying, also considering how other important groups in segments similar to us are performing right now. Even if we are a smaller size group, the market is showing an appreciation for we have been doing in recent times.” When asked about the reasons for the group’s progress Spalla commented: “It’s the consequence of a combination of different strategies: we redefined the quality of our partnerships with our licensing partners; we reshaped our collections in terms of image, style and similar factors and devoted greater attention to communication initiatives – be them sponsorships for brands like Kappa - and more traditional ones for K-Way and Superga.”

The group registered growth also in its domestic market: “Italy is the only market we manage directly since our other markets are managed trough our licensed partners - thanks to a redefinition of our sales policy here, by returning to sell through about 60 top-end multibrand clients we had neglected in the past; we redefined some productive strategies for our collections by earning back margins; we also redefined our monobrand distribution policy,” he explains while referring to the closing of about 45 monobrand stores based in not strategic locations, while opened some new stores. From the 240 monobrand stores of end 2013 they reached 256 stores. They are presently operating in Italy through a total of 450 multibrand stores for Kappa and about 900 for Superga and K-Way.

The group is also focused on constantly opening new monobrand stores internatioanlly. They expect to open two new stores in China – a Superga store in Beijing and one in Shanghai during these weeks, as well as in Argentina and Brasil. In Europe they continue working especially through multibrand stores, though are also keen on opening in flagship stores such as the recently inaugurated Superga store in London in and Brest (France), to be opened today. Another Superga store is expected to open by end 2014 in Madrid.