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Discover how L Catterton’s €15 million infusion propels Etro’s revival, marking significant growth and positive EBITDA in 2022. The strategic recapitalization aligns with the brand’s multifaceted transformation under CEO Fabrizio Cardinali.
In the midst of a flourishing revival under L Catterton’s influence, Etro is set to receive a substantial boost with a €15 million recapitalization. L Catterton, the prominent private equity fund affiliated with luxury giant LVMH and majority stakeholder in the iconic Italian luxury house since July 2021, spearheads this strategic financial injection.
Etro’s Transformation Journey:
Over the past two years, Etro, primarily owned by L Catterton (60%) with the Etro family holding (40%), has undergone a profound organizational metamorphosis. CEO Fabrizio Cardinali, at the helm, has orchestrated processes like reengineering, strategic repositioning, and ushering in a new aesthetic direction led by Creative Director Marco De Vincenzo. These comprehensive initiatives span refining product offerings, image cultivation, bolstering digital engagement, and enhancing supply chain management and distribution networks.
Bold Targets and Financial Progress:
Around a year ago, Cardinali set an ambitious target of reaching €500 million within the next five years. Recent financial updates showcase the brand’s momentum, with a 17% increase in turnover in 2022 compared to 2021, reaching €277 million. Etro achieved operational profit for the first time since the COVID pandemic, demonstrating positive EBITDA outcomes with a €9 million growth compared to 2021 and a notable €25 million surge compared to figures from 2020.
Strategic Recapitalization:
Despite these strides, the brand reported a loss of €23.6 million in 2022, attributed primarily to amortization and extraordinary expenses. In response, L Catterton’s strategic move for a €15 million recapitalization is seen as instrumental support for Etro’s ongoing journey toward financial strength and sustained growth.
Explore how L Catterton’s strategic funding aligns with Etro’s multifaceted transformation, marking a pivotal chapter in the brand’s resurgence.
