Versace’s board of directors passed the 2009 annual performance report. The company’s operating loss was 49 million euros. The unsatisfactory performance was mainly attributed to the special expenditure of the year as high as 37 million euros. Versace said in a statement that performance “reflects the decline in the world’s fashion and luxury consumption†and the result of the restructuring program’s expenditure aimed at ensuring the firm’s solid development prospects. The program plans to close 250 stores, accounting for about a quarter of all retail outlets. Sales of this luxury fashion and accessories brand dropped from 336.3 million euros in 2008 to 268 million euros in 2009. The global financial crisis has caused a sharp drop in demand for luxury goods in 2009, or it has caused consumers to switch to relatively low-priced products. Versace general manager Gian Giacomo Ferraris expects the group to be profitable in 2011. The Altagamma Foundation’s survey conducted in April based on analysis of more than a dozen banks and research companies showed that the sales prospects of Italian luxury goods in Asia, South America and the Middle East are extremely optimistic. 
Versace said in a statement that performance “reflects the decline in the world’s fashion and luxury consumption†and the result of the restructuring program’s expenditure aimed at ensuring the firm’s solid development prospects. The program plans to close 250 stores, accounting for about a quarter of all retail outlets.