Morellato Group's Strong Performance in a Challenging Year
Padua, zaterdag, 31 mei 2025.
The Italian jewellery and watchmaking giant, Morellato Group, has concluded its fiscal year 2024/2025 with a revenue of 723 million euros, despite a slight decrease compared to the previous year. This result demonstrates that the company has managed to improve its profitability with an impressive EBIT margin of 21.3%. The company has expanded its retail footprint with 19 new stores and has withstood setbacks such as the declining demand in the luxury market. Morellato is further focusing on sustainability by producing collections with 100% recycled silver. These efforts come amidst a challenging market environment, yet the strategic steps taken by Morellato promise future growth and market expansion. Maintaining such a stable financial position casts a positive light on the prospects of the luxury markets in Italy and beyond.
Strategic Expansion and Sustainability
The expansion plan of Morellato Group in 2024/2025 included the opening of 19 new stores across four European markets, thereby strengthening its retail position [1][2]. Despite the challenge of a slight revenue decline from 737 million euros last year to 723 million euros this year, the company succeeded in increasing its EBIT margin to 21.3% [1][2][3]. This improved profitability is partly due to the production of jewellery collections with 100% recycled silver, emphasising the group’s commitment to sustainability [1][2].
Resilience in a Competitive Market
In a year marked by a decline in overall visible sales in the luxury sector, Morellato Group demonstrated remarkable resilience. The company managed to maintain its financial stability by focusing on sustainability and strategically broadening its brand portfolio, including the support of Live Diamond, which produces jewellery with 100% recycled gold and lab-created gemstones [1][3]. This initiative was recognised within the sector and strengthened Morellato’s position as a pioneer in responsible jewellery production [3].
Economies of Scale and Market Expansion
Aside from its achievements in the domestic market, Morellato derives a significant portion of its revenue from international markets, accounting for 70% of total sales [4]. This strategy provides the company with a competitive edge and economies of scale, slightly offsetting fluctuations in domestic demand. E-commerce activity also contributed to 20% of total revenue, a significant increase from 17% the previous year [4].