Versace sees profit in 2011 after restructuring

* 2009 revenue fell to 268 mln euros

* FY operating loss of 49.6 mln euros

* Q1 retail sales, orders up

MILAN, June 7 (Reuters) - Versace is looking to return to profit in 2011, after restructuring and weak demand dragged down revenue in 2009, the Italian fashion house said on Monday.

The Medusa-logoed group, which cut its workforce to return to profitability, said retail sales and orders rose in the first quarter of 2010, signalling changes were paying off.

Versace, whose evening gowns have been worn by film stars Drew Barrymore and Penelope Cruz and pop diva Madonna, posted a consolidated operating loss of 49.6 million euros in 2009, compared with a loss of 400,000 euros a year earlier.

Revenue fell to 268 million euros ($320 million) last year from 336.3 million in 2008, as the downturn sapped appetite for luxury items.

"The sales trend has been influenced by weakness in demand and the reorganisation of our distribution network," Chief Executive Gian Giacomo Ferraris said in a statement.

Versace, owned by design head Donatella Versace, her daughter Allegra and her brother Santo, has recently moved away from its trademark glitz to include outfits with broader appeal.

($1=.8375 Euro) (Reporting by Antonella Ciancio; Editing by Steve Orlofsky)