BasicNet Reports 2024 Revenue Growth as K-Way Prepares for Milan Show and Celebrates 60th Anniversary
As it gears up to stage the coed fall K-Way show in Milan on Feb. 25, parent BasicNet on Wednesday reported consolidated preliminary 2024 revenues of 409.2 million euros, up 3.1 percent from 396.8 million euros in 2023.
This included direct sales of 346.8 million euros, up 4.2 percent on 2023, and royalties from commercial and production licensees of 60.9 million euros, a 2.2 percent decrease.
K-Way is planning a series of initiatives this year to mark its 60th anniversary, starting with the “In Y/Our Life — The Hidden Side of Everyday Things” exhibition, opening the same day as the show at the Museo della Permanente in Milan.
“2024 was a greatly satisfying year for the group, and particularly as these results were achieved within a still very complex macroeconomic environment,” stated chief executive officer Federico Trono. “The gradual improvement throughout the year of the economic performance and the equity position, supported by the solid commercial growth of the group’s brands, allowed us to deliver record consolidated revenues and EBITDA. Simultaneously, working capital was optimized and the debt to banks reduced. All these components confirm the strategic foundation of our business model geared toward ensuring the long-term, sustainable growth of the group’s brands.”
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BasicNet was founded by Marco Boglione, who conceived the group in 1994 as a marketplace and publicly listed it on the Milan Stock Exchange in 1999. BasicNet owns the Superga, Robe di Kappa, Kappa, Sebago, Jesus Jeans, K-Way, Sabelt and Briko brands.
In October, Permira Growth Opportunities II, a fund managed by global investment firm Permira, said it had reached an agreement to buy a 40 percent stake in French premium outerwear brand K-Way from BasicNet, which holds the remaining 60 percent stake.
As per this agreement, K-Way’s enterprise value, including the IFRS 16 standard, was pegged at 505 million euros. The closing of the agreement is expected on Feb. 28.
Permira is aiming to support K-Way’s growth across its channels, with a particular emphasis on direct-to-consumer avenues, opening new stores, expanding its product range, reinforcing the brand’s leadership in France and Italy, but also to grow internationally.
Stemming from the storied traditional clothing company Maglificio Calzificio Torinese, which was founded in 1916, BasicNet doesn’t produce or distribute the collections of its brands. Billing itself as a “fully web-integrated company” through a digitally advanced platform, it acts as a marketplace where manufacturers and distributors meet to do business. In particular, BasicNet, whose headquarters are in Turin, designs and develops its labels’ collections, then the company signs licensing agreements with international producers and distributors, which receive from BasicNet all they need to manufacture and sell the products, from research and development to global marketing.
The sons of Marco Boglione, Alessandro and Lorenzo, hold the role of executive vice presidents of BasicNet and CEOs of K-Way.
In 2024, group earnings before interest, taxes, depreciation and amortization totaled 61.1 million euros, up 5.1 percent on 58.1 million euros in 2023, with increased investments in sponsorships and communication and human resources, reflecting the group’s commitment to develop the brands.
Operating profit rose 2.6 percent to 42.1 million euros compared with 41.1 million euros in 2023, impacted by the opening of 12 directly operated points of sale in 2024 as part of the group’s retail development.
Aggregate sales of the group’s branded products by the global network amounted to 1.2 billion euros, up 3.3 percent compared with 2023.
Commercial licensees and direct sales climbed 12.1 percent in Europe, which accounts for about 76.6 percent of aggregate sales, and by 1.5 percent in the Middle East and Africa, while reducing in the Americas, down 21.3 percent, and in Asia and Oceania, a 22.6 percent decrease.
As of Dec. 31, the net financial position was negative at 142 million euros, compared with 139.1 million euros at the end of December 2023. Debt with banks amounted to 90.8 million euros, improving compared with 92.6 million euros at the end of December 2023.
The company distributed dividends of 7.4 million euros last year, and acquired treasury shares for 14.4 million euros.
