Coveted Italian fashion house Roberto Cavalli saw its revenues decline 13.6 percent in 2016 to 155 million euros (164 million dollars), Reuters reports. The company reported loss before interest, tax, depreciation and amortisation of 26 million euros (27.6 million dollars) and said that the restructuring costs contributed to a net loss of 55 million euros (58 million dollars).
However, the report adds that CEO Gian Giacomo Ferraris, said in a statement direct sales were "stabilised, if not slightly growing in the first quarter of 2017."
Ferraris had undertaken a complete overhaul of the group six months ago, to cut costs and improve profitability. His strategy led to almost 200 of the company’s staff losing their jobs in October. In the same month, its creative designer Peter Dundas, whose hippie chic style received a cold response, left the company.
Despite the disappointing performance last year, the Florence-based fashion label, which was acquired by Italian private equity firm Clessidra in April 2015, expects to return to profitability in 2018.
Picture:Roberto Cavalli website