Jan 20, 2015
Cavalli expects Russian sales to take 20 pct hit this year
Jan 20, 2015
MILAN, Italy - Italian fashion group Roberto Cavalli expects its Russian revenue to drop by around a fifth this year because of the country's financial woes, its chief executive said on Tuesday, adding that a stronger dollar would help to offset the hit.
The Florentine group famous for its animal prints achieved a slight rise in revenue last year, CEO Daniele Corvasce said, while warning of the impact of the situation in Russia, the currency of which lost more than 40 percent against the dollar last year.
"We estimated it could cut (Russian) revenues by around 20 percent in 2015, but the stronger dollar should help make up for it," Corvasce said.
The company's sales totalled 201 million euros ($232.8 million) in 2013.
Corvasce also said that talks to sell a majority stake to Italian private equity fund Clessidra were proceeding well. The two parties began talks in December and said they have until March to reach an agreement.
"Everything is going according to schedule. At present I don't anticipate any surprises," Corvasce told reporters before the brand showcased its Autumn/Winter 2015 men's collection, featuring fur coats and leather trousers.
Earnings before interest, tax, amortisation and depreciation (EBITDA) fell last year because of one-off items linked to problems at some garment makers that produced clothes for the brand. However, Corvasce said the figure was in line with 2013 after excluding extraordinary items.
Cavalli does not disclose a breakdown of revenues by country. Corvasce said the company had four shops in Russia in a joint-venture with a local partner and also sold its goods in multibrand stores.
It is set to open its tenth U.S. store in Houston this year, he added.
€1 = $1.16/£0.76
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