The listed company wants to consolidate the market. Last year, it bought 100 percent in Simple clothes company for PLN 32m (EUR 8.4m).
“We are constantly watching the Polish and foreign markets as far as possible acquisitions are concerned. We are looking for companies with growth potential”, Maciej Fedorowicz, Gino Rossi CEO said.
The management is leading advanced talks with a Polish and a foreign company but refuses to give any details.
“Unless the negotiations end up with an acquisition, we may found another brand”, Maciej Fedorowicz said.
If the talks end with success, the company may consider raising funds for acquisitions on the stock exchange.
“In July, the board and supervisory board will discuss a possible new issue”, Maciej Fedorowicz assured.
The issue would probably be conducted as early as this year and would resemble the one done last year when the company raised PLN 36m. The majority of these funds were spent to develop the network of the following brands: Gino Rossi, Vanita, Geox and Simple. Today, there are 100 Gino Rossi shops, including 22 abroad, 7 Vanita shops, 4 Geox shops and 32 Simple shops. Till the end of the year, there will be 25 new outlets launched.
Last year, Gino Rossi group had PLN 117.4m of sales and PLN 9.6m of net income. This year’s forecasts amount to PLN 170m and 12.5m respectively.
(PLN 1 = EUR 0.264)