Benetton after disposing off its sports equipment business that led to its first ever full year loss in 2002 has once again registered a profit with a net income of €108 million for the year 2003.
Sales declined by 6.7% to €1.859 billion in 2003 versus €1.992bn the year before, reflecting the sale of the sports units.
The gross operating income was €810million vs. €868million in 2002, with the sales to income ratio unchanged at 43.6%. Increased volumes and an improved product mix in the casual clothing division
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Income from operations was €232million compared to €243 million for 2002 with an improved ratio to revenues, which moved to 12.5% from 12.2% due to the disposal of the sports business. Lower income from operations for the casual clothing division was attributed to exchange rate movements and higher accruals.
Looking ahead to 2004, Benetton is forecasting sales of around €1.80bn and net income equivalent to 7% of sales (€126M.) A moderate increase is forecast for casual clothing division revenues, with a target around €1.58bn. 
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