Roberto Cavalli in the red
As of 30th June 2015, the fashion label from Tuscany generated a revenue of €91.7 million, recording a 7.9% decrease compared to the second half of 2014. Its EBITDA stood at €3.5 million, a 14.6% decrease, the company suffering a loss of €5.9 million.
Over the same period, net financial liabilities for the brand, whose Creative Director is Peter Dundas, went from €41.1 to €46.8 million, according to figures reported by the Italian daily.
These results are explained by “a major decline in wholesale revenue (-20.6%) and by the decrease in royalty remittances from licensees of the Roberto Cavalli brand (-4.9%),” as stated in a company document mentioned by MF Fashion.
For 2015, the revenue is expected to reach €184.8 million, a figure below that of last year. According to the business plan elaborated by the new shareholders, sales are expected to reach €319.6 million in 2020. This will be a crucial year, after which the label is expected to return to profitability.
In its initial phase, Cavalli’s industrial plan notably provides for the retail network’s restructuring, with the closing down of the less profitable stores, including those of Tokyo and Shanghai. At the same time, new stores will be opened, for example in Houston, with the objective of growing from 43 directly-owned shops today to 53 in 2020.
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# Cavalli,# Clessidra,# MF Fashion,# Peter Dundas,# Roberto Cavalli