Foto REUTERS/Arnd Wiegmann
The company ended the year with a loss of 33 million euros. For comparison: in 2024 the losses amounted to 100 million euros, and in 2023 they reached 230 million, FashionNetwork writes. It was after this that the family holding Edizione, controlled by the Benetton family, was forced to support the business again and initiate a large-scale restructuring.
The crisis was accompanied by a change of management and internal conflict: former CEO Alessandro Renon left the company after Luciano Benetton accused management of failing to disclose the extent of financial problems in a timely manner.
The situation began to change with the appointment of Claudio Sforza in the summer of 2024. The recovery program launched has already brought the first visible results. The group’s net debt has been reduced by around €100 million to €311 million. This has allowed Benetton to withdraw the last part of its €90 million financial support to Edizione.
That said, the company continues to operate in a challenging environment. Revenue for the year fell from €915 million to less than €800 million. Benetton attributes this to the downturn in the clothing and textile market, as well as the reorganization of the distribution network: the closure of unprofitable stores and the termination of cooperation with problematic partners.
Despite the decline in revenue, the company considers the current results as a sign of stabilization. Benetton focused on improving efficiency, accelerating collection development and modernizing logistics. One of the key projects was the cooperation between Poste Italiane and Benetton Logistics to develop the Castrette di Villorba logistics center, one of the largest fashion hubs in Europe.
In parallel, the group is updating its product strategy, focusing on a younger audience. The company is developing collaborations, including projects with Netflix, and is also working on the relaunch of the Jean’s West brand.
Today, the Benetton chain has about 2,700 stores in 80 countries, and reaching break-even is already seen as a realistic goal for the next fiscal year.
