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Cavalli Profits Climb 19.6%

The expansion of its retail network and new licenses, with an acceleration of the newly relaunched Just Cavalli line, helped lift profits in the first half.

MILAN — The expansion of its retail network and new licenses, with an acceleration of the newly relaunched Just Cavalli line, helped lift profits and revenues at the Roberto Cavalli Group in the first half.

This story first appeared in the September 6, 2013 issue of WWD.  Subscribe Today.

In the period ended June 30, earnings before interest, taxes, depreciation and amortization rose 19.6 percent to 8.7 million euros, or $11.4 million, compared with 7.3 million euros, or $9.4 million, in the same period last year. Revenues gained 7 percent to 97 million euros, or $127 million, compared with 90.7 million euros, or $117 million.

Dollar amounts have been converted at average exchange for the periods to which they refer.

Royalties grew 28 percent, mainly through the new Just Cavalli line produced by Staff International. Collections for Just Cavalli under a new licensing agreement with Staff International bowed in 2012, succeeding a long-standing deal with Ittierre.

The company also pointed to the success of the new fragrances with Coty Inc., such as the new Roberto Cavalli scent, launched last year, followed by the introduction of the Just Cavalli fragrance.

The Italian firm has also been capitalizing on the designer’s home collection, ranging from furniture to wallpaper, based on seven licensing agreements with leading companies in different interior sectors, launched last year. The second line was presented in April at the fairgrounds of Milan’s international design and furniture exhibition, the Salone del Mobile.

Cavalli is also banking on hospitality projects. A new Cavalli Club will open in Miami in November, in addition to the two existing Cavalli Clubs and six Cavalli Caffès.

In the first half, retail sales grew 17.8 percent. There are currently 173 monobrand group boutiques, an increase of 36 units compared with June 2012. Of these monobrand venues, 31 are in China and 20 in Southeast Asia and Japan.

In the second half, 22 stores are expected to be opened: three Roberto Cavalli, seven Just Cavalli — including the flagship on Broadway in New York — eight Cavalli Class and four RC Junior.

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