Despite decline in sales: Benetton reduces annual loss by 65 percent

The restructuring plan of the Italian fashion company Benetton is beginning to bear fruit. The company, led by Chief Executive Officer (CEO) Claudio Sforza, was able to reduce its loss by over 65 percent in the 2025 financial year.

Sforza was appointed in June 2024 and immediately initiated a plan to restructure and rationalize the company and its distribution network.

After the completion of the reorganization, the sales network of the company, founded in 1965 by Luciano Benetton, includes around 2,700 sales points worldwide. Benetton is represented in 80 countries.

Annual sales fall to just under 800 million euros

In addition, corporate management was reorganized; the changes came into effect in January this year. The aim was to strengthen efficiency, increase management transparency, upgrade assets and create the conditions for targeted industrial partnerships.

After streamlining its sales network, the Benetton Group’s sales fell by 13 percent to just under 800 million euros last year. In 2024 it was still around 915 million euros.

However, the group has made progress in terms of earnings in recent years. In 2023 the loss was 230 million euros, in 2024 it was not even half as high at just under 100 million euros. In 2025, the deficit was reduced by a further 65 percent to around 33 million euros.

The first industrial partnership with the Italian Poste Italiane was announced a few weeks ago and was made possible by the institutional relationship with the holding company Edizione. The strategic agreement envisages the entry of Poste Logistics, a company of the Poste Italiane Group specializing in integrated logistics, into Benetton Logistics, a spin-off of the Benetton Group.

This creates a new joint venture called “Logistic 360”, in which Poste Italiane has a 51 percent stake and the Benetton Group has a 49 percent stake. The central aspects of the agreement are the strengthening and upgrading of the logistics center in Castrette di Villorba in the province of Treviso. The aim is to develop the facility into a national and international reference center that is also open to new product sectors.

The partnership between Poste Italiane and Benetton Group aims to significantly increase the operational capacity of the infrastructure. 30 million items of clothing can already be managed there on a total area of ​​around 400,000 square meters. Of these, 100,000 square meters are equipped with the latest generation of automated systems. The distribution center can handle up to 45,000 packages per day. In addition, a fleet of robots optimizes warehousing and picking for e-commerce.

The group is relying on comprehensive reforms in production and supply chain

The operating model for product management and procurement has been revised to shorten the development and production times of the collections.

This targeted measure is intended to make the company more responsive and competitive so that it can quickly adapt to market trends and consumer needs. As part of the supply chain, a comprehensive plan has been initiated to rationalize direct production sites. The focus is on procurement that significantly reduces costs by relying on a network of highly qualified, specialized suppliers.

The relaunch of Benetton also relates to the product. The further development of the brand is intended, in particular, to intensify the dialogue with the new generations by enhancing its own roots with a contemporary perspective.

In this context, the company has launched a number of initial development initiatives. This includes a collaboration with Netflix, which resulted in collections inspired by the platform’s iconic programs such as the series “Stranger Things”. Another project is the relaunch of “Jean’s West” with a new collection. Founded in 1974, the brand is known for denim and its western aesthetic.