Roberto Cavalli branches into hotel interior design in deal with Dubai developer Damac

Above, an artist illustration of a Just Cavalli Villa designed for Dubai developer Damac. (Courtesy Damac)
Updated 01 October 2018
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Roberto Cavalli branches into hotel interior design in deal with Dubai developer Damac

  • The agreement is part of the company’s bid to expand the luxury and fashion brand into lifestyle categories and find new sources of revenue
  • Roberto Cavalli is on track to break even this year and return to a net profit in 2019

MILAN: Italian fashion house Roberto Cavalli has signed a partnership agreement with Damac Properties under which it will provide the interior design for at least five luxury hotels, starting with a first one to be built in Dubai by 2023.
The agreement, which follows a separate collaboration with Damac on Cavalli-branded villas, is part of the company’s bid to expand the luxury and fashion brand into lifestyle categories and find new sources of revenue for the Florentine label famous for its animal prints. Company officials declined to give financial details of the deal.
Roberto Cavalli is on track to break even this year and return to a net profit in 2019, Chief Executive Gian Giacomo Ferraris said at an event to announce the hotel project on Monday.
He declined to comment on market speculation that Italian private equity group Clessidra, which bought 90 percent of Roberto Cavalli in 2015, might be looking to sell, other than saying that management was focused on executing a strategy agreed with the shareholder.
“The company is making big improvements, but to remain competitive, it needs to invest,” Ferraris said, adding Clessidra was fully supporting the company’s growth.
“The important thing is to ensure that the growth happens in an organic manner and quickly.”
Clessidra’s Managing Director Manuel Catalano said earlier this month the private equity group was working well with Ferraris, who is also former head of fashion house Versace, and had no intention of exiting Roberto Cavalli in the near term.


BMW plans massive cost cuts to keep profits from sputtering

Updated 20 March 2019
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BMW plans massive cost cuts to keep profits from sputtering

  • ‘Our business model must remain a profitable one in the digital era,’ chief executive Harald Krueger said
  • Total number of employees is set to remain flat at around 135,000 worldwide

MUNICH: German high-end carmaker BMW warned Wednesday it expects pre-tax profits “well below” 2018 levels this year as it announced a massive cost-cutting scheme aimed at saving $13.6 billion (€12 billion) in total by 2022.
A spokesman said that “well below” could indicate a tumble of more than 10 percent.
The Munich-based group’s 2019 result will be burdened with massive investments needed for the transition to electric cars, exchange rate headwinds and rising raw materials prices, it said in a statement.
Meanwhile it must pump more cash into measures to meet strict European carbon dioxide (CO2) emissions limits set to bite from next year.
And a one-off windfall in 2018’s results will create a negative comparison, even though pre-tax profits already fell 8.1 percent last year.
Bosses expect a “slight increase” in sales of BMW and Mini cars, with a slightly fatter operating margin that will nevertheless fall short of their 8.0-percent target.
“We will continue to implement forcefully the necessary measures for growth, continuing performance increases and efficiency,” finance director Nicolas Peter said at the group’s annual press conference.
BMW aims to achieve €12 billion of savings in the coming years through “efficiency improvements” including reducing the complexity of its range.
“Our business model must remain a profitable one in the digital era,” chief executive Harald Krueger said.
This year, most new recruits at the group will be IT specialists, while the total number of employees is set to remain flat at around 135,000 worldwide.
Departures from the sizeable fraction of the workforce born during the post-World War II baby boom and now reaching retirement age “will allow us to adapt the business even more to future topics,” BMW said.
All the firm’s forecasts are based on London and Brussels reaching a deal for an orderly Brexit and the United States foregoing new import taxes on European cars.
“Developments in tariffs” remain “a significant factor of uncertainty” in looking to the future, finance chief Peter said, adding that “the preparations for the UK’s exit from the EU will weigh on 2019’s results as well.”
In annual results released ahead of schedule last Friday, BMW blamed trade headwinds and new EU emissions tests for net profits tumbling 16.9 percent in 2018, to €7.2 billion.