Roberto Cavalli to remain in the red until 2020
Italian luxury fashion brand Roberto Cavalli which had been acquired by Italian investment fund Clessidra, recorded €5.9 million in losses as of 30th June 2015, and is expected to remain in the red until 2020.
As of 30th June 2015, Roberto Cavalli 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.
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%),”
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.