Gianni Versace: EBITDA in 2012-2015
In 2015, the Italian luxury brand Gianni Versace S.r.l.’s earnings before interests, taxes, depreciation and amortization (EBITDA) amounted to approximately 57 million euros. The figure represented a remarkable increase compared to 2011, the first year considered in the graph, when the EBITDA of the company amounted to just below 19 million euros. The increase in EBITDA coincided with a twofold increase in turnover for Versace during the same period, which grew from 214 million euros in 2011 to 442 million euros in 2015.
EBITDA, an indicator of profitability
Because it does not include factors such as debt financing, capital structure, methods of depreciation, and taxes, the EBITDA is used to evaluate a company’s operating performance. When a company is not making a profit, investors can turn to EBITDA to measure its profitability. This metric represents a reliable indicator to compare similar firms in the same industry. For example, when looking at a ranking based on EBITDA of Italian fashion companies listed on the Milan Stock Exchange, it can be seen that Luxottica, the leading company in the eyewear sector, reported an EBITDA of over 1.2 billion euros in 2015, compared to 374 million euros reported by Prada. What does this mean? Simply put: the higher the EBITDA the better, because the company is making more money.
Italian brands, foreign ownership
Founded in 1978 in Milan, the brand Versace is one of the symbols of Italian luxury worldwide. However, Versace is one among several Italian brands that was acquired by larger international groups in the last few years. In 2018, Group Michael Kors Limited (later renamed Capri Holdings Limited) acquired the brand Versace, forming a global fashion luxury group together with the brands Michael Kors and Jimmy Choo.
EBITDA, an indicator of profitability
Because it does not include factors such as debt financing, capital structure, methods of depreciation, and taxes, the EBITDA is used to evaluate a company’s operating performance. When a company is not making a profit, investors can turn to EBITDA to measure its profitability. This metric represents a reliable indicator to compare similar firms in the same industry. For example, when looking at a ranking based on EBITDA of Italian fashion companies listed on the Milan Stock Exchange, it can be seen that Luxottica, the leading company in the eyewear sector, reported an EBITDA of over 1.2 billion euros in 2015, compared to 374 million euros reported by Prada. What does this mean? Simply put: the higher the EBITDA the better, because the company is making more money.
Italian brands, foreign ownership
Founded in 1978 in Milan, the brand Versace is one of the symbols of Italian luxury worldwide. However, Versace is one among several Italian brands that was acquired by larger international groups in the last few years. In 2018, Group Michael Kors Limited (later renamed Capri Holdings Limited) acquired the brand Versace, forming a global fashion luxury group together with the brands Michael Kors and Jimmy Choo.
