Roberto Cavalli Bets on Bold Designs, Taylor-Swift Effect for Turnaround
The company’s turnaround plan found an influential ally in the pop superstar who has been wearing the firm’s custom couture during her record-shattering Eras Tour
Italian luxury-fashion label Roberto Cavalli SpA is shunning quiet luxury and China, two of the industry’s most powerful engines, in its attempt to make a comeback—with a little help from Taylor Swift.
The brand, known for its animal-print designs and extreme aesthetic, was acquired in 2019 by Dubai-based conglomerate DAMAC Group. After years of financial struggles that led the company to file for bankruptcy protection and forced it to retreat, Roberto Cavalli is looking to expand again.
The company’s turnaround plan found an influential ally in pop superstar Taylor Swift, who has been wearing custom couture looks designed by Roberto Cavalli creative chief Fausto Puglisi during the singer’s record-shattering Eras Tour.
“That is also part of the renaissance of the brand,” Roberto Cavalli Chief Executive Sergio Azzolari said in an interview. “One of the fears was that, after all these turmoils, the brand would have been kind of diluted, which it was at the initial stages.”
Last year, Swift donned a glittery long-sleeved navy crop top and skirt by Roberto Cavalli on the red carpet of the Grammy Awards.
The company needs to respect its past and its identity, but rethink the customer base and update the market strategy, the CEO said.
Recent results from luxury groups showed a gap between the companies that cater to the most affluent consumers and those that are more exposed to a younger, less-wealthy clientele. Amid a sector-wide slowdown, sales at companies such as LVMH—which owns the Louis Vuitton, Dior and Tiffany brands—and Hermes International have held up better than rivals like Gucci owner Kering.
Analysts say wealthy shoppers have embraced so-called quiet luxury, the trend of less showy, but steeply priced clothing. However, Azzolari said the company is turning even bolder in its atelier line, continuing to bet on animal print and splashy designs as the brand’s signature.
“This authenticity is what new generations are looking for,” Roberto Cavalli’s CEO said. The company is revamping its Just Cavalli line, which targets a Gen-Z clientele, while the Roberto Cavalli brand focuses on wealthier consumers.
“We are staying true to the brand,” Azzolari said.
While Roberto Cavalli has gone from being on thin ice to planning for growth and expansion, its ambitions could encounter hurdles. “It is safe to say that the Roberto Cavalli brand has continued to be less and less relevant over the past 20 years,” Bernstein analyst Luca Solca said.
Despite a spike in interest in Roberto Cavalli in April, around the time of the death of the company’s namesake founder, the brand’s popularity—as measured by Google searches—trended downward over the last 15 years with some ups and downs along the way, according to Google Trends. Google Trends tracks relative popularity of search terms by comparing to other searches.
Roberto Cavalli aims to reach break even this year and Azzolari said the company is on track to meet its targets. In 2023, it booked revenue of 120 million euros ($128.5 million), while it expects to reach EUR500 million in 2026. The company doesn’t disclose profitability figures.
“We are at a point in time where we have to pick our battles,” Azzolari said.
The company is focused on expanding in North America as well as in the Europe, Middle East and Africa region. It has opened new stores in Las Vegas and Ibiza and plans to expand in Dubai by the end of the year. Unlike other luxury names, Roberto Cavalli lacks a strong presence in China, one of the biggest luxury markets, and its CEO doesn’t plan to change that.
“Cavalli was never really a household name in China,” Azzolari said. The company would need a lot of time and effort to approach Chinese consumers with a localized and tailored offer, he added. It currently sells its products in the country through wholesale channels.
By contrast, Roberto Cavalli’s CEO sees potential in India. “It is a very interesting market, but no one has cracked the code yet,” he said.
Azzolari ruled out the possibility of new investors for the time being. “Eventually, if we do our job well and we go back to a certain size and visibility, then it would be interesting to see what we can do,” he said.