MILAN — Benetton SpA tapped a new chief executive officer, once again turning to a fashion world outsider.
Warner Music executive Gerolamo Caccia Dominioni will take over on June 1, the clothing firm said Friday. Caccia Dominioni replaces Silvano Cassano, who left in November after clashing with the Benetton family over international strategy.
Caccia Dominioni, 52, is currently the London-based vice chairman and chief operating officer of Warner Music International, a division of Warner Music Group. The Italian executive has spent 10 years at the music company, first as chairman of operations in southern Europe and later as chairman for all of the European business.
Benetton said Caccia Dominioni played a significant role in growing Warner’s international presence in about 40 countries, including emerging markets. Benetton said it chose the executive for his international experience, knowledge of local markets and ability to thrive in an ever-evolving entertainment industry.
“These characteristics, together with his consistency and his capacity to create a cohesive and motivated managerial team, are particularly in-line with the entrepreneurial culture, capability for innovation and development [plans] of Benetton Group,” the company said in a statement.
Before joining Warner Music, Caccia Dominioni held various positions at Time Warner and Philips Italia. Reached at Warner offices in London, he declined to comment.
The appointment comes amid a generational shift at Benetton. Family patriarch and chairman Luciano Benetton said in October that he will hand over the reins to his son Alessandro this year. A Benetton spokesman said Alessandro led the ceo search.
Armando Branchini, president of Milan-based consultancy InterCorporate, said he was surprised Alessandro Benetton didn’t opt for a fashion insider, but he considers Caccia Dominioni’s music background a valuable asset. Warner’s portfolio of recording artists includes Madonna, Green Day, Red Hot Chili Peppers and R.E.M.
“The elder members of the Benetton family would not have chosen anyone from the entertainment world while Alessandro did,” Branchini said. “The company needs to get back in touch with young consumers.”
Benetton has faced some tough times. Market observers have said the company needs to do a better job of competing with more fashion-forward chains Hennes & Mauritz and Inditex’s Zara.
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The retailer’s financial performance is showing improvement. Benetton released full-year 2006 results Friday in line with previous guidance. Net profit rose 11.7 percent to 125 million euros, or $157.5 million. Revenues grew 8.3 percent to 1.91 billion euros, or $2.41 billion. Dollar figures have been converted at average exchange rates for the period.
As for the current year, Benetton noted a strong order book for the spring-summer and fall-winter seasons. The company estimated earnings before interest, taxes, depreciation and amortization this year will grow 20 percent, while sales should rise between 6 and 8 percent. Benetton said it will invest between 250 million euros, or $330.6 million, and 300 million euros, or $396.7 million, this year, most of it on international expansion.
Since 2003, the Benettons have said they want to step back from day-to-day operations, acting as shareholders rather than managers. The company reiterated that intent Friday.
Caccia Dominioni is not the first non-fashion executive to take Benetton’s helm. The company tends to turn to talent from other industries. Cassano was a former Fiat executive. His predecessors Luigi De Puppi and Carlo Gilardi came from the worlds of home appliances and banking, respectively.