“The market continues to award us: up until now we have done well”, says Dior’s Pietro Beccari to MFF. The president and CEO asserts the good results of its last 5 years: “Beating records is in our DNA”. Even so, Dior fears a recession is coming. And that’s why it talks about caution, even if the industrial plan remains unvaried and it will continue making new acquisitions.
Dior fears a recession
The forecasts remain positive. Even though Beccari doesn’t make definitive statements on the numbers (in photo from LVMH), he lets us understand that 2022 is going very well, from a financial standpoint. Sadly, the context is changing: “We all fear a recession – he says -. So, we remain cautious, as we aren’t sure what to expect from here on out”.
The brand’s priority is growth. “I don’t think it’s shameful, we have a reference stockholder to please. Our main duty is to generate revenue – he argues – It can be done in many ways: not sustainably. Or it can be done by building steps for the future”. Meanwhile, there are chances to maintain growth rates stable in the short-term: increasing price tags. “Yes, we have increased prices in January and again in July – admits Mr. Beccari -. We will see if we can afford not to increase them, and if so, we won’s. It’s a matter of being able to ensure a certain level of profitability”.
Mr. Beccari admits to MFF that a brand of the size of Dior has a strength: “Being all over the world and being very profitable. I don’t hide it – he says -. But we use this strength to make interesting initiatives. For example, we supported many artisans during Covid-19. Now we are acquiring small companies in Italy. It’s about being egotistical, but it’s also about perpetuating tradition”. What M&A operations are being prepared? “I don’t want to make them public yet, but we are associating ourselves with many Italian and French companies – he answers -, to integrate small family businesses that can guarantee timeliness, know-how and production volumes”.