Roberto Cavalli family takes management reins following 9% growth in 2013
Surprise announcement at Roberto Cavalli. The Italian label's top executives are leaving the group, which is meanwhile the intense focus of rumors in the media about investment funds looking to acquire the brand. After five years of loyal service, CEO Gianluca Brozzetti and COO Carlo di Biagio are leaving Cavalli, according to a statement from the company.
Just coincidence? The same day this press release and the publication of the company's results for fiscal year 201, Roberto Cavalli had denied an article in the Italian weekly "Il Mondo" a few hours earlier about a hypothetical sale of the group, saying "no agreement, not even preliminary, has been signed." The business magazine had reported that Permira equity funds was in negotiations with Roberto Cavalli and mentioned that the investment company had offered 450 million euros to purchase the fashion house.
With the departure of Gianluca Brozzetti and Carlo di Biagio, the family is taking over management of the group. President Roberto Cavalli will assume all operational duties together with his long-time colleague, Daniel Corvasce, the company's counselor and corporate legal affairs director.
Gianluca Brozzetti and Carol di Biagio had joined the company in 2009, "to implement a program of re-balancing and growth of the Roberto Cavalli group through interventions that became necessary following the stock market crisis after Lehman Brothers and setbacks for some strategic licensees," said the brand. The family apparently believes the phase of reorganization and the revitalization of the brand are now complete.
Its decision is supported by group's positive results, which finished 2013 with a consolidated revenues of 201 million euros, a 9.3% increase compared to 2012, according to figures released by the company.
Sales in single-brand stores under direct management were especially strong, up 18.6% compared to 2012 (+22% at constant exchange rates), thanks to increased sales in existing stores (+8.0 %) and the opening of new stores such as St. Tropez, Vienna and Hong Kong.
As of December 31, 2013, the total number of single brand stores (directly owned and franchised) was 179 versus 168 in late 2012: 90 Roberto Cavalli (including 44 owned units), 44 Just Cavalli, 31 Cavalli Class and 14 Roberto Cavalli Junior stores.
The brand is also preparing to open a 1,500-square-meter, five-story flagship store in the prestigious Via Montenapoleone in Milan. "It will be the largest Roberto Cavalli store in the world," revealed the Florentine designer during the runway show of his men's wear collection on January 14. The opening is scheduled for February 22 during the next Milan fashion week.
The group's licenses also posted excellent results in 2013 with a 15.3% increase in royalties. The growth was mainly due to the relaunch of the brand's second line, Just Cavalli, under the direction of Staff International, part of Renzo Rosso's OTB group. After a store opening in Milan for Just Cavalli, the company also opened a flagship store in New York.
Other growth factors came from the Roberto Cavalli Junior license and the launch of a new fragrance, Just Cavalli made by Coty. The consolidation of the "Roberto Cavalli Home" collection also contributed to the bottom line, a concept launched two years ago in partnership with seven companies each specializing in a specific sector, with distribution in Eastern Europe, Middle East and Asia.
And lastly, the company continued to expand its hospitality sector business, opening three new Cavalli Caffès in Beirut, Saint Tropez and Kuwait City in the first half of 2013. A Cavalli Club is also set to open in Miami in the near future.
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