Retailer caps debt at Eu450m
Revenues from the spring/summer collection and healthy orders for autumn/winter collection will put Benetton on track to hit revenue growth targets. However, a sharp increase in its debts prompted the fashion retailer to cap its debt at Eu450 million (£307.6 million).

It expects to maintain a growth rate of 6 per cent to 8 per cent for the next few years.

For the first quarter to March 31, the chain booked net revenues of Eu460 million (£314.5 million), up 10.5 per cent compared with Eu416 million (£284.4 million) in the same period last year. Net income was up 11.9 per cent to Eu27 million (£18.5 million), compared with Eu24 million (£16.4 million) last year.

Its debts have risen to Eu472 million (£322.7 million) compared with Eu377 million (£257.7 million) this time last year. The retailer increased capital expenditure on property and investment in the sales network. Benetton also invested in developing its production centre in Tunisia and logistics hub in Castrette, Italy.

Benetton will continue to invest in the business, but intends to keep debt below Eu450 million (£307.6 million) in the future.

The chain said that there were positive signs from all brands. Benetton's adult range maintained its growth rate, as did the children's collections, including the new Sisley Young collection. There were also initial positive signs from the newly positioned Playlife brand, which has numerous dedicated stores.