Italy : Diesel Set to Enter Russia With Own Stores

Diesel SpA, the Italian fashion company, on Wednesday announced plans to enter Russia with two stand-alone stores while admitting that the "time of strong growth was over". The company's CEO Renzo Rosso said Diesel plans to focus on consolidating the brand's image rather than chasing after sales increases.

Molvena-based Diesel said it will open a stand-alone store in July and another in the second half of 2004. Both stores will be located in Moscow and will be opened in cooperation with the company’s local distributor. Diesel also said it will open its third store in Milan in September.

The company, which is becoming more and more secretive about financial figures, said it had no reason to be worried even though it conceded that the "prospects for the future were not the best". Diesel confirmed its results for 2002, which showed a 15.6 per cent jump in turnover to € 650m and a rise in net profit of 16.5 per cent to € 52m.