Ferrari to launch fashion collaboration with Armani

Ferrari to launch fashion collaboration with Armani

MILAN — Sportscar maker Ferrari on Monday announced a fashion collaboration with Giorgio Armani as part of its long-promised strategy to squeeze more value out of the storied company’s allure.

CEO Louis Camilleri told analysts that Ferrari aims to earn 10 per cent of earnings before interest and taxes within a decade from three defined brand extension areas: apparel, entertainment and luxury services.

The Italian company aims to both increase and retain a greater portion of the 800 million euros ($892 million) in products bearing the prancing horse logo, the CEO said. That will include jettisoning licenses that don’t properly represent Ferrari.

“This is not just about profit, this is about enhancing our brand equity and the vitality and vibrancy of the brand,” Camilleri said.

Ferrari has long had one of the world’s most recognizable brands, but it has only recently translated that into value. Its brand’s value grew from $4 billion in 2014 to $8.3 billion in 2019, according to London-based consultants Brand Finance. It is now seventh on Brand Finance’s list of most valuable luxury brands, from 350th five years ago.

As part of the new strategy, Ferrari will focus the use of its brand, reducing licenses by half and eliminating a third of the product categories currently available.

Besides the apparel line to be produced in Italy through a long-term deal with Armani, Ferrari will expand its entertainment offerings, which currently comprise theme parks in Abu Dhabi and Barcelona and two museums in Italy, with driving simulation centres to leverage its Formula 1 racing heritage.

The third category, luxury services, will include a new restaurant with Michelin-star chef Massimo Bottura to open next year at the Maranello headquarters, which already has a Ferrari-themed hotel.

Ferrari raised its earnings forecast, citing a robust third-quarter performance including a 9 per cent increase in deliveries.

It raised its full-year forecast for net revenues to 3.7 billion euros, from 3.5 billion euros previously. It lifted its prediction for earnings before interest, taxes and amortization to 1.27 billion euros from 1.25 billion euros.

In the third quarter, earnings before interest, taxes and amortization rose 11 per cent to 311 million euros. Revenues rose 9% to 915 million euros.

Deliveries hit 2,474 vehicles, lifted by the Ferrari Portofino and the 812 Superfast. They were up by double-digits in Europe, were flat in the Americas and dipped 2% in greater China. Full-year volumes will be in the 10,000-region.

Ferrari has unveiled four new models this year as it renews a product portfolio, and will preview a fifth next Wednesday at an event in Rome.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

A sign on a shop window indicates the store is closed in Ottawa, Monday March 23, 2020. The Canadian Federation of Independent Business is raising its estimate for the number of businesses that are considering the possibility of closing permanently. THE CANADIAN PRESS/Adrian Wyld
Alberta entrepreneur launches project to help small business owners

Bruce Tannas is trying to bring together small businesses as the COVID-19… Continue reading

Alberta Premier Jason Kenney updates media in Edmonton on measures taken to help with COVID-19 on Friday, March 20, 2020. Political analysts say Kenney must rethink his traditional “fight back” approach and start building bridges to reconcile environmental concerns with oil and gas development. THE CANADIAN PRESS/Jason Franson
Political scientists say Kenney must rethink pugilistic approach on oil, environment

Keystone XL pipeline expansion would have taken more oil from Alberta through the United States to refineries and ports

An incomplete secondary wall stands alongside the previous version near where the border separating Tijuana, Mexico, and San Diego meets the Pacific Ocean Tuesday, Jan. 19, 2021, in Tijuana, Mexico. In the days before Joe Biden became president, construction crews worked quickly to finish Donald Trump’s wall at an iconic cross-border park overlooking the Pacific Ocean that then-first lady Pat Nixon inaugurated in 1971 as symbol of international friendship. (AP Photo/Gregory Bull)
Biden halts border wall building after Trump’s final surge

Pause order leaves billions of dollars of work unfinished but still under contract

Former Alberta Premier Rachel Notley shakes hands with Joel Ward, former Red Deer College President and CEO, as Notley announces that the college is on the path to grant degrees. Red Deer-South MLA Jason Stephan says university status is not a necessary condition for offering degrees. (File photo by Advocate staff)
Future of Red Deer University increasingly uncertain

MLA’s college update says RDC more like SAIT and NAIT than a university

There are two confirmed COVID-19 cases at Red Deer College. Photo by Mamta Lulla/Advocate staff
Central Albertans were promised a university

Central Albertans were promised a university

Jacqueline Donahue of Hazleton, right, buys la Mega Millions lottery ticket at the Anthracite Newsstand on Public Square, Monday, Jan. 18, 2021, in Wilkes-Barre, Pa. (Mark Moran/The Citizens’ Voice via AP)
Nearly $1B Mega Millions prize due to long odds, slow sales

Only the third time a lottery jackpot has grown so large

David Shoemaker, chief executive officer of the Canadian Olympic Committee, speaks during the Olympic Partnership kick off event at the Sobey’s office in Mississauga, Ont. on Monday, October 7, 2019. Shoemaker says the IOC remains committed to staging the Summer Games in Tokyo this summer. THE CANADIAN PRESS/ Tijana Martin
Canadian Olympic boss says IOC plans to go ahead with Tokyo Games this summer

IOC calls cancellation decision “categorically untrue”

FILE - In this Jan. 24, 2011 file photo, Dustin Diamond attends the SYFY premiere of “Mega Python vs. Gatoroid” at The Ziegfeld Theater in New York. Diamond is undergoing chemotherapy treatments after being diagnosed with cancer, according to his representative. Diamond, best known for playing Screech on the hit ’90s sitcom, was hospitalized earlier this month in Florida. Last week, his team disclosed he did have cancer. (AP Photo/Peter Kramer, File)
Dustin Diamond undergoing chemotherapy treatments for cancer

Diamond hospitalized earlier this month in Florida

Winnipeg Jets' Mark Scheifele, left, and Kyle Connor, right, congratulate Blake Wheeler on his goal during second period NHL action against the Ottawa Senators on Thursday, January 21, 2021 in Ottawa. THE CANADIAN PRESS/Adrian Wyld
Four different Jets score as Winnipeg beats the Ottawa Senators 4-1

Four different Jets score as Winnipeg beats the Ottawa Senators 4-1

Most Read