L Catterton is further cementing its hold on Etro‘s capital. The investment fund, linked to LVMH, which acquired a majority stake in the historic Italian luxury house in July 2021—securing 60% with the founding family retaining the remaining 40%—is opening its wallet again. Etro, when contacted, chose not to comment on the reports by Milan daily MF Fashion, which suggested that L Catterton might increase its shareholding further.

In the midst of a revival since its acquisition by L Catterton, Etro will benefit from fresh financial resources through a new recapitalization following last autumn’s 15 million euro capital increase. At a recent shareholders’ meeting, it was decided to proceed with a capital increase of 1.73 million euros, the financial newspaper reported, citing the minutes of the meeting.

According to MF Fashion, L Catterton has expressed its willingness to fully subscribe to this capital increase, while the Etro family has opted not to exercise their preemptive rights, potentially allowing the investment fund to increase its stake.

Over the past three years, Etro has thoroughly revamped its organization, processes, and strategy under the leadership of CEO Fabrizio Cardinali, with a new aesthetic driven by creative director Marco De Vincenzo. In 2022, the brand saw its revenue increase by 17% compared to 2021, reaching 277 million euros, marking a return to operational profit for the first time since the Covid pandemic, with a positive and growing EBITDA of 9 million euros. However, the brand reported a loss of 23.6 million euros at that time.

Despite recent challenges in the luxury market, worsened by a difficult economic climate, Etro continues to launch new activations and initiatives. In early July, it unveiled a pop-up space in London’s Selfridges department store, open until August 12, dedicated to its Love Trotter and Bond bag models crafted from archival dormant fabrics of the house.