Milan fashion house Roberto Cavalli has reduced its losses, as its turnaround strategy shows signs of taking hold.
It posted an operating EBITDA loss of €7.1m (£6.2m) in the year to 31 December, compared with an equivalent loss of €26.2m in 2016.
Total revenue dipped by 1.8% to €152.4m. Its retail and wholesale businesses combined grew 3% to €110.3m.
The fashion house said its performance was “better than planned”, and that it is on track to reach operating profitability in its 2018 financial year.
Gian Giacomo Ferraris, CEO of Roberto Cavalli, said the brand was: “doing better than expected during a turnaround, and in a slow-growth market. To me, it confirms that our roadmap is correct, and that we have the right creative direction and management team.
“We are back in some of the best concept and department stores, which bought Roberto Cavalli again after only two shows by [creative director] Paul Surridge. This is a major sign of confidence for us.”
Starting with its spring 18 season, the group will directly manage its own production and distribution of underwear, beachwear and sportswear collections for the Roberto Cavalli brand.
It added that its management has been “particularly active in the hospitality and lifestyle business”, in which property developers had “expressed strong interest” in collaborating on real estate projects with its brands.
The group signed its first agreement of this nature, to design interiors for luxury residential projects in Dubai and Saudi Arabia, in late 2017.
Its store count stood at 87 at its year end. Of these, 46 were directly run and 41 operated through franchising agreements.