Italy Luxury Brand Roberto Cavalli Is Expected To Lose Until 2020.

Roberto Cavalli is the world famous clothing brand founded by Italy famous designer Robert Caavalli (Roberto Cavalli). Since its establishment in 60s, its wild sexy style has become the vanguard of fashion trend and has become the most wild brand of Milan fashion circle.

Recently learned that from the beginning of this year from the founder

Italy's luxury group Roberto Cavalli SpA, which moved to Clessidra SGR SpA in Italy private equity fund, slipped and lost a net loss in the medium term income and core earnings in 2015. The Group expects the loss will continue until 2020.

Italy's industry media revealed that Roberto Cavalli SpA SpA declined 7.9% in the first half of June 30th to 91 million 700 thousand euros compared with the first half of 2014, mainly due to a 20.6% drop in wholesale revenue and a 4.9% decrease in authorized revenue from agents.

Core profit EBITDA recorded a 14.6% decline, falling to 3 million 500 thousand euros, with a net loss of 5 million 900 thousand euros.

Net cash decreased from 46 million 800 thousand euros to 41 million 100 thousand euros.

According to Italy private equity fund Clessidra SGR SpA released.

The revenue of Roberto Cavalli SpA will decline by 11.7% to 184 million 800 thousand euros this year, compared with 209 million 400 thousand euros in 2014, while revenue in 2020 is expected to be 319 million 600 thousand euros, and it will return to profitability at the same time.

At present, Roberto Cavalli has only retained the equity of Roberto Cavalli SpA 10%, while Clessidra SGR SpA has accounted for the majority of the 90% stake, the London investment company L-GAM Advisers LLP and the Chow Tai Fook Enterprise Limited participated in a minority equity investment.

Clessidra SGR SpA executive vice president, Bulgari Bvlgari family successor and former chief executive officer Francesco Trapani as president of Roberto Cavalli SpA, Renato Semerari and designer SpA were appointed as the new CEO and creative director of the group respectively.

Under the leadership of the new management, Roberto Cavalli SpA has launched a reorganization plan from the traditional family business to the enterprise structure pformation.

The first phase of the plan will not only sell the seven tier property of the brand Paris flagship store and exhibition room, but also close the stores with poor brand performance in Shanghai and Tokyo, and will also cut down quite a few employees in the factories and headquarters, but this has sparked the anger of employees and trade unions, and hundreds of employees staged demonstrations in October.

Stores collate, recruit leaders, re brand positioning and re launch for key sectors such as design and sales.

And focusing on the development of wholesale business in US Department stores also need to be completed before the end of the first phase of 2017.

From the second stage of 2018, the group will focus on the expansion of retail and wholesale business in the European market, and the multi brand channels in China and Southeast Asia will also focus on development.

Now Roberto Cavalli SpA has 43 independent stores worldwide, and the group hopes to increase to 53 by 2020.