Luxury Brand Roberto Cavalli Will Be Reorganized

According to the world clothing shoes and hats net, Italy Luxury goods group Roberto Cavalli SpA released its annual report on Thursday. The group's revenue dropped sharply from 13.6% to 155 million 200 thousand euros in 2016.

As of the 2016 fiscal year of December 31, 2016, the core profit EBITDA of Roberto Cavalli SpA recorded a loss of 26 million 100 thousand euros, a sharp increase compared with the 1 million 600 thousand loss in 2015.

For the bad performance, Roberto Cavalli SpA said the group is currently restructuring, and the first quarter of this year has stabilized, with a slight increase in revenue.

Roberto Cavalli SpA has reorganized its management since it was bought 90% equity by Clessidra SGR SpA in April 2015. So far, it has changed two CEO - first of all, from the group's perfume agency Coty Inc. (NYSE:COTY) Cody group, which has been selected from the Cox group. It soon left because of its divergence from the development strategy of the fund owner. In August 2016, it replaced it with the success and failure of Versace.

In 2016, Roberto Cavalli SpA recorded a net loss of 55 million 200 thousand euros due to increased restructuring costs. In 2015, the Group recorded a net profit of 32 million 700 thousand euros. Only the positive revenue came from the flagship store property sold on the outskirts road of San o o Lei, Paris. The group also suffered a loss of 41 million euros in 2014.

Gian Giacomo Ferraris

Gian Giacomo Ferraris reiterated that Roberto Cavalli SpA is expected to return to profitability in 2018. He also said the group would tighten its licensing business to control its positioning. At present, the authorized business accounts for 30.9% of the group's revenue, only 42.9% of the direct business, and the lowest proportion of wholesale business revenue is 262%.

In addition, Gian Giacomo Ferraris also mentioned that the group is in urgent need of a new creative leader.

Since the departure of Peter Dundas in October 2016, the position of creative director of Roberto Cavalli has been vacant, and Peter Dundas has been in a very short position. Only one and a half years ago, Norway designers went to the "second Palace" in March 2015. In the 2002-2005 years before that, he served the Italy group for three years.

For the reorganization of Roberto Cavalli SpA, Gian Giacomo Ferraris also adopted the usual means of layoffs. In October 2016, after the meeting with the trade union, Roberto Cavalli SpA announced the reduction of 200 positions, accounting for 30% of the 672 jobs in the world.

When the annual report was released, Gian Giacomo Ferraris said that the actual layoffs were less than 200 people, and the number of local layoffs in Italy was 117. The number of employees in Italy market was 263 by the end of 2016.

At the same time, in order to simplify the group structure, Roberto Cavalli SpA closed the Milan headquarters and Design The office will transfer all functions to Osmannoro in Florence, which is the location of the group plant, and the production and logistics department will also be optimized.

The closure of the group regroup includes IFC flagship store in Hongkong, while Vienna, Venice and Madrid stores are closed.

As of April 11th, Gian Giacomo Ferraris said the group's direct business grew by 6%.

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