Pinko returns to profitability following strategic restructuring and new leadership

After navigating several challenging years, Italian womenswear brand PINKO has successfully returned to profitability in the first quarter of 2025. This marks a significant achievement in its ongoing transformation, driven by a strategic overhaul and new leadership.

The company, founded in 1986 by Pietro Negra and Cristina Rubini, reported Q1 sales exceeding 70 million euros and a positive EBITDA shift of 6 million euros, moving from -1.2 million euros to +5 million euros year-on-year. This turnaround comes as PINKO works to emerge from Italy’s Composizione negoziata della crisi, a negotiated debt settlement procedure. Chairman Pietro Negra described it as a "real turning point," emphasizing a prudent, sustainable business plan designed to generate cash flow starting this year.

A new phase under CEO Laura Manelli

The arrival of CEO Laura Manelli in March 2025 signaled a decisive shift for PINKO. With extensive experience at leading fashion houses such as Armani, Versace, Fendi, and Sergio Rossi, Manelli brings a strong background in financial oversight and fashion operations. Under her leadership, PINKO has concentrated on redefining its business model, streamlining operations, and realigning with core brand values.

"We prefer not to call it a relaunch," Manelli stated. "There is untapped potential in the brand. These results confirm that our new approach is working." She underscored the company’s strengths in brand recognition and customer loyalty, attributing the recent progress to employee commitment and the new management team’s direction.

Lessons learned from overexpansion

PINKO's current position follows a period of rapid expansion and financial strain. After growing revenue from 197 million in 2019 to 303 million euros in 2022, the company embarked on an ambitious international strategy targeting 500 million euros in turnover. However, significant investments in China and the US underperformed, leading to liquidity issues and a debt load exceeding 100 million euros by late 2023.

"The post-Covid growth wave misled us," Negra admitted. "We invested too fast, especially in China, where market dynamics shifted rapidly. Our mistake wasn’t going to China – it was going too fast."

The restructuring blueprint

To regain financial stability, PINKO implemented comprehensive restructuring measures, including closing underperforming stores, cutting operational costs, resizing the company, and simplifying its governance. The plan has been submitted to banks for final approval and is expected to conclude the debt resolution process by mid-year.

Both Negra and Manelli emphasize that the crisis was financial, not a crisis of brand identity. "This was a financial crisis, not a crisis of image," Manelli noted. The brand's appeal remains intact, and current efforts are focused on refining market positioning and improving operational efficiency.

Future outlook: Strategic recalibration

Positioned firmly in the ‘entry-to-luxury’ segment, PINKO is recalibrating its international strategy with a more selective and geographically cautious approach. A new partnership with Lima Commercial Management in Shanghai, signed in February 2025, exemplifies this shift towards sustainable growth in China.

Domestically and internationally, PINKO is also deliberately moving away from the post-pandemic pricing surge observed across the luxury sector. "We’re lowering our prices," Negra stated. "Our aim is to offer the best value for money while maintaining our aspirational brand presence."

With strong Q1 figures, a refined strategy, and new leadership at the helm, PINKO appears to be transitioning beyond crisis towards a more measured and resilient future.