Roberto Cavalli to hit break even in 2024

«The breakeven point is expected to be reached by 2024, with the first profits», Sergio Azzolari, ceo of Roberto Cavalli, explained in an exclusive interview with MFF. The manager took over the helm of the historic fashion house designed by Fausto Puglisi six months ago (see MFF of March 30) and has continued the positive actions started by his predecessor, Ennio Fontana, who is now working at Dsquared2.

«The brand is fully owned by Dubai businessman Hussain Sajwani, who also owns the real estate giant Damac. However, his investment in the brand is independent of Damac and is made through his subsidiary, Auriel Investment SA. There are currently no plans to open up to new partners or credit lines», he continued. «The company is projected to generate revenues of about 120 million euros in 2023, a significant increase from the 87 million generated in 2022. The goal is to reach a range of 400-500 million in size». As for ready-to-wear, «we have plans to expand into accessories, footwear, and daywear, while maintaining womenswear as our core business». Among the unexpected news is an update on the flagship store located on Via Montenapoleone, in Milan’s fashion district. «We are currently considering both a revamp and relocation to a key location on the luxury street».

There are currently 12 directly operated stores. In 2024, major openings will include Los Angeles. «We are considering an opportunity in Paris, as it is a city where we need to have a major store. We would like approximately 40 stores at full capacity, as they are a form of marketing and visibility», ceo Sergio Azzolari continued. «I believe that Roberto Cavalli is like a start-up and reaching break-even in a short time despite the challenging situation under Hussain Sajwani’s leadership shows the Maison’s strength and growth potential», he recalled.

The company reduced its losses from 23 million to 4 million last year. Do you anticipate breaking even by 2024?

The breakeven point is expected to be reached by 2024, along with the first profits. The company is projected to generate revenues of about 120 million euros in 2023, a significant increase from the 87 million generated in 2022.

What size are you aiming for after reaching breakeven?

The goal is to reach a range of 400-500 million in size.

Will you involve additional partners?

The brand is fully owned by Dubai businessman Hussain Sajwani, who also owns the real estate giant Damac. However, his investment in the brand is independent of Damac and is made through his subsidiary, Auriel Investment sa. There are currently no plans to open up to new partners or credit lines.

Are you planning to introduce new product categories?

Next may, we will be launching the new Serpentine sneakers, featuring a special contoured sole with two intertwined snakes. Our target market includes Gen Z and Gen Alpha. We have ambitious plans for the Just Cavalli line, which we produce in partnership with Swinger international.

Does Fausto Puglisi’s work give you a strong relationship with celebrities?

From Taylor Swift to Beyoncé and Elodie, stars love Fausto (Puglisi, ed.). Our archive provides us with pieces for red carpets at events such as the Oscars and Cannes.

Where is the archive stored and how many pieces does it contain?

Our archive in the province of Como contains 17,000 pieces, including our couture garments which are made in-house at our Milan atelier.

Will you parade with couture?

We already do, hosting client-only events in Saint Tropez, for example. This segment currently accounts for 4% of our revenues. We are not putting ourself on the calendar at the moment.

Are there plans for hotels after the Cavalli Towers?

Two hotels are currently being studied, one in the city and one on an island as a resort. We are taking our time to ensure we create the best possible experience.

How does e-commerce work?

Roberto Cavalli’s e-commerce is now managed in-house since September; as a result, it does not rely on Farfetch anymore. The brand’s appeal among different generations is evident from our 9 million social media followers.

Are new fragrances on the way?

Following the new partnership with Interparfums, the first fragrance is set to launch in 2025.

What about Montenapoleone?

As for Montenapoleone, we are currently evaluating whether to revamp or relocate, but we will definitely be present there. (All rights reserved)