Roberto Cavalli Announces Departure of Creative Director--Update
October 12 2016 - 01:47PM
Dow Jones News
By Manuela Mesco and Deborah Ball
Florence-based fashion house Roberto Cavalli SpA announced the
departure of its designer, as it embarks on a reorganization under
new management.
The design house, famous for its provocative styles and a
favorite among celebrities, said Wednesday that creative director
Peter Dundas will leave after two years with the house. Mr.
Dundas's design team will carry on with the collections until a new
creative director is appointed "in due course," the company
said.
Mr. Dundas couldn't immediately be reached to comment.
The move is the opening shot in a wide-ranging overhaul under
new Chief Executive Gian Giacomo Ferraris, who is seeking to slim
down and refocus the house in the midst of a global slowdown in the
luxury goods industry.
The news from Cavalli follows management changes at other
European fashion houses, including Kering SA's Bottega Veneta, Hugo
Boss AG and Burberry Group PLC, which are bringing in new blood in
response to the fresh challenges of the luxury market.
Last year, Italian private-equity firm Clessidra bought a 90%
stake in the fashion house. Founder Roberto Cavalli holds the
remaining 10% stake. In July, the company said that Mr. Ferraris,
who led a successful turnaround at Gianni Versace SpA, would become
its new chief executive.
Upon his arrival, Mr. Ferraris said in an interview, he found
operating costs had grown by about 30% in four years, with design
headquarters in Milan in addition to offices in Florence. The
company had also splashed out on stores that were too large. Even
before the arrival of Mr. Ferraris, the house sold its Paris
flagship store.
Now, Mr. Ferraris is embarking on deep cost cuts, with plans to
centralize the house's administration in Florence and cut 200 jobs.
He will close unprofitable stores, including those in Vienna and
Madrid, and relocate others. Remaining stores will get a
face-lift.
"This is a comprehensive restructuring plan," said Mr. Ferraris,
adding he doesn't expect the company to grow next year. "Our
priority now is to strengthen the company, then we'll look at
making it grow," he said.
Despite its popularity, Roberto Cavalli has remained a minnow in
the fashion world, even as Italian rivals such as Giorgio Armani
grew. In recent years, the house's designs lost their luster and it
stumbled in its attempt to expand into leather accessories. "It
lost relevance," said Mario Ortelli, analyst at Bernstein.
In 2015, sales were EUR180 million ($199.8 million), down 14%
from a year earlier, owing to a fall in licensing fees and a
decline in sales to Russian shoppers, who have traditionally
flocked to the house. The company posted an operating loss of
EUR1.6 million.
Write to Manuela Mesco at manuela.mesco@wsj.com and Deborah Ball
at deborah.ball@wsj.com
(END) Dow Jones Newswires
October 12, 2016 13:32 ET (17:32 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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