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By
Reuters
Published
Sep 6, 2013
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New stores boost first-half earnings at Cavalli

By
Reuters
Published
Sep 6, 2013

MILAN, Italy - Italian fashion house Roberto Cavalli reported a 20 percent rise in first-half core earnings, boosted by new outlets and rising royalties, it said on Thursday.

Roberto Cavalli store launched in Vienna in May.

The group, headed by the Florentine designer whose collections feature animal prints and leather-fringed jeans, said it made earnings before interest, tax depreciation and amortization of 8.7 million euros ($11.5 million).

Consolidated net sales rose 7 percent to 97 million euros, helped by the opening of 36 new sales outlets since June 2012.

Income from royalties rose 28 percent partly thanks to the relaunch of the younger-focused "Just Cavalli" line through an agreement with Diesel founder Renzo Rosso, a perfume deal with beauty firm Coty and new licenses for its homeware line.

Cavalli, which is seen as a potential takeover target among Italy's crop of fashion brands, said it plans to open 22 new shops in the second half, including a flagship store in New York for the Just Cavalli line.

The brand, which has been worn by singer and actress Jennifer Lopez, will open a Cavalli Club in Miami in November, adding to its existing nightclubs in Milan and Dubai. The Dubai venue is marketed as "the distillation of all things fabulous".

$1 = 0.7577 euros

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