Etro’s New Phase: CEO Fabrizio Cardinali on Strategy, Expansion

MILAN — Etro on Wednesday will unveil its first collection designed by a team following the exit of Marco De Vincenzo in March — only one of the key decisions made by chief executive officer Fabrizio Cardinali to lead the brand into a new phase.

The path forward includes relying on new stakeholders Rams Global; Mathias Facchini, who helms Swinger International and is the owner of the Genny brand, and SRI Group, which in December joined L Catterton, the majority shareholder, followed by the exit of the Etro founding family as a consequence.

In an interview ahead of the fashion show, Cardinali, who joined Etro as CEO from Dolce & Gabbana in 2021 shortly after the arrival of L Catterton, said the company is reaping the rewards of the strategies planned and executed over the past few years.

Investing in its direct-to-consumer channel has contributed to profitability gains. In 2025, on sales that amounted to 242.2 million euros, Etro reported earnings before interest, taxes, depreciation and amortization of 8.3 million euros, which compares with 850,000 euros in 2024.

In the first six months of 2026, on a sales hike of 3 percent, the EBITDA margin was up by 6.2 million euros compared with 2025. “All areas are showing positive signs globally in a market that is highly challenging — to say the least,” Cardinali said.

“Through careful and orderly planning, we have been streamlining our retail network, simplifying our central structure, and improved our margins,” he continued, also highlighting the importance of an integrated omnichannel network from the end of 2024 and through 2025, “integrating our stock, better managing the expectations of our customers and improving our working capital, which is key.”

Cardinali reallocated resources to Europe, Japan, America and the Middle East by cutting back distribution in China, closing 13 stores.

“This has always been a challenging market for this brand and even more so now, and in the medium-long term I believe it’s best to divert investments to those areas that are performing well.”

Globally, Etro has a total of 120 stores. “We are well-covered in main cities around the world, we need to improve productivity of these stores and not focus on expanding the network,” he remarked.

Cardinali revealed the company is planning “a very important celebration” in New York on Oct. 21 to mark the 30th anniversary of the Madison Avenue flagship.

In 2025, retail accounted for 65 percent of sales, compared with 62 percent in 2024 and the directly operated e-commerce site registered a 36.5 percent uptick in sales on the previous year. “In terms of digital business, the U.S. is our number-one market, followed by Europe, it is very strong in Germany and Italy, and then Japan,” Cardinali said.

Asked to comment on the exit of De Vincenzo after almost four years, Cardinali said “everything has a cycle. My vision as a shareholder and CEO is that I’ve always seen Etro as quintessentially a lifestyle brand, so the centrality of the label, its codes, its fabulous archive inherited from the founder [Gerolamo Etro] are increasingly key success factors, solid elements for an evolution in the long-term.”

To wit, in an exclusive WWD preview and cover shoot, the looks show that Etro’s codes are heightened, evolved lightly, while rooted in the brand’s heritage. Bohemian touches remain, as seen in the feather-light, floor-length chiffon dress, contrasting with a tailored cotton and Lurex pantsuit embellished with the brand’s signature paisley motif.

Cardinali said the women’s design team has been strengthened and added: “We are custodians of the brand and I don’t believe in upturning its identity, its value and the patrimony of loyal customers, who want to see the paisley, the positive energy, its joy and lightness; these are key elements I have to preserve. That said, we are in no rush, and never say never [and we could consider the right designer] but it has be natural and organic.”

Menswear represents 30 percent of sales and Cardinali believes it still has great potential. “Etro was founded as a textile company, then introduced men’s ties, shirts and jackets, and womenswear followed, so I am confident in the legitimacy of this [men’s] division, which I think can grow to reach half of our sales.”

In fact, in menswear, Cardinali is pushing the Etro Unique project, the highest range of the brand, from Made to Measure and Made to Order to bespoke, all made by hand, and it is expanding its categories to also include outerwear in addition to jackets, pants and shirts, investing in training its retail team and organizing events in its main stores.

At the same time, the executive has been leveraging the brand’s home collection, a cornerstone and significant business for the Milan-based label.

Cardinali plans to develop additional Etro residential projects with Rams, which brings to the table more than 36 years of experience across 11 business areas, from luxury residences to hospitality and gastronomy.

Etro’s first residential project was the Tower Rams Beyond in Istanbul, followed by another residential project in Phuket, by Amal Development in collaboration with The One Atelier.

“We have just inked a deal for branded residences with Rams in Central Asia, from Kazakhstan to Uzbekistan, Georgia and Albania,” Cardinali revealed.

Asked whether Etro hotels could be in the cards, the executive said, “Why not?” Je added that there are talks taking place, but stayed mum on details.

Other avenues include a new beachwear license with Swinger and the launch in November of Etro’s first fragrance with Coty Inc. in Asia and Europe, followed by the U.S.

It also continues its collaboration in food and beverage with fine dining and Italian cuisine landmark Aimo e Nadia, and more is to come, Cardinali teased.