While Versace revenues rose 3.7 per cent for its latest fiscal year, expansion led to a consolidated loss of €7.4 million (US$8.4 million) compared to a €15.3 million profit in 2015.

With a turnover of €668.7 million, the margins of the Italian fashion house halved, with pre-tax profit falling 45.5 per cent.

Retail sales rose 4.3 per cent to €418.1 million, with Asia the best performer showing 8.8 per cent growth.

Controlled by the Versace family (80 per cent) and the Blackstone fund (20 per cent), the brand saw its operating costs rise by up to €60.7 million because of retail development investments including the opening of 29 stores and five outlets last year. The retail development plan continued this year with the launch of four outlets in the first quarter.

Also last year the company focussed on the development of the label Versus and setting up online.