Fashion house Cavalli to boost accessories, expand

Sun Jan 17, 2010 11:10am EST
 
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By Marie-Louise Gumuchian

MILAN (Reuters) - Fashion house Roberto Cavalli is looking to boost its accessories segment and expand in South America and Asia Pacific this year, its chief executive said, adding there were signs of improvement in the luxury market.

Gianluca Brozzetti told Reuters in an interview that the fall in consumption in Europe and the United States had stopped and there was "some sign of things getting better." There is growth in Asia.

"We are seeing positive signals. The (sales) haemorrhage seen at the end of 2008 and in the first half of 2009 has stopped," Brozzetti said.

"In certain geographical areas, there is a recovery but we are cautious looking ahead ... (Compared to the first half of 2009), I confirm there is some improvement. We hope it stays in 2010."

Luxury groups are looking to win back consumers as they emerge from the worst economic crisis in decades which has sapped demand for designer goods. A tepid recovery is seen in global luxury sales this year, experts have said.

Cavalli, which showed off its autumn/winter 2010/2011 menswear collection on Sunday as part of Milan fashion week, said in September first-half sales fell 19 percent to 88 million euros ($127 million), with half the fall due to problems at IT Holding fashion production unit Ittierre.

IT holding is in special administration.

Cavalli is one of Milan's top fashion names alongside Giorgio Armani, Prada, Gucci, Versace and Dolce & Gabbana.   Continued...