Both divisions benefited from the continued improvement of the Group's sales mix that reflects:
-- Leather Goods representing 39.2 percent of consolidated revenues;
-- Own brands generating 88.5 percent of consolidated revenues;
-- Direct distribution channels (including DOS, Franchisees, and wholesale customers acquiring directly from the Group's showrooms) representing 69.5 percent of consolidated revenues (39 percent from DOS and franchise boutiques), and
-- Export markets representing 67.5 percent of consolidated revenues.
Ebit increased to €15.1 million for the quarter (+73.5 percent) from €8.7 million of Q1 2005. Pretax income increased to €10.2 million (+103.3 percent) vs. €5 million of Q1 2005. Net Financial Position reflected Net Debt of €188 million vs. € 69.2 million at December 31st 2005.
Q1 2006 proved to be extremely dynamic with:
-- The acquisition by AP of a 51 percent controlling interest in Coccinelle, an important addition for the company and an important value driver. The brand is extremely well known in Italy and Western Europe and firmly places AP as Europe's leading accessible luxury handbag and accessories company with its main brands, Coccinelle, Braccialini, and Francesco Biasia.
-- The acquisition by Itochu of a 3.3 percent equity interest in AP. Itochu Corporation is one of Japan's most successful trading companies and one of the world's largest corporations with a network of more than 670 companies in 80 countries.
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