Brands like Levis, UCB and Zara have turned profitable. While Zara has been profitable in India for at least four years, Levi’s and United Colors of Benetton (UCB) despite being in the black, are dealing with accumulated losses.
German sports goods maker Puma, which has emerged as the top global lifestyle brand here in terms of revenues (Rs.878 crore) and Spanish clothing brand Zara (Rs.720 crore) are two leading global brands that do not have accumulated losses.
Adidas, with sales of around Rs.805 crore in FY15, has accumulated losses of around Rs.68 crore, while Reebok, which is owned by it, has accumulated losses of around Rs.2,198 crore with sales of around Rs.332 crore in FY15.
Nike with sales of around Rs.804 crore in FY15, has piled up accumulated losses of around Rs.541 crore, up from around Rs.439 crore in FY14, according to the US firm’s latest filing with the Registrar of Companies. UCB, with sales of around Rs.719 crore, has accumulated losses of around Rs.84 crore and Levi’s with sales of around Rs.634 crore has accumulated losses of around Rs.93 crore in FY15. Both companies made profits in the current year of around Rs.47 crore and Rs.11 crore respectively.
