Mar 16, 2016
Desigual: the 2015 fiscal year marked by sales erosion
Mar 16, 2016
As FashionMag had already anticipated in February, on Wednesday Spanish brand Desigual confirmed it closed the 2015 fiscal year with sales of €933 million, equivalent to a 3% decline.
EBITDA stood at €200 million, a 24% decline year-on-year, due on the one hand to the sales decrease, and on the other to the investment undertaken to expand the store network, notably during the fiscal year's last quarter.
Desigual's cash position nevertheless rose by €75 million, reaching €298 million at the end of the fiscal year.
In particular, sales in France and Spain have fallen, while the performance of non-European markets, notably Latin America, was positive. The latter currently represents 10% of total sales.
The company is now going through a rationalisation and transformation programme. In 2015, Desigual opened 21 new stores, far fewer than the 100 shops opened in 2014.
In mid-2015, the Spanish group began to rationalise its distribution network, with the objective of increasing the latter's profitability. The process - which is continuing in 2016 - has already brought about the closure of 27 stores.
In the years to come, the fashion group will concentrate on its 4 key categories: menswear, womenswear, accessories and childrenswear, while other segments such as fragrances, footwear, sportswear and homewear/home décor will play a secondary role. Also, Desigual will focus on the 4 markets which account for 70% of its total sales: France, Spain, Italy and Germany.
The transformation also involves putting customers at the heart of the group's strategy, rather than products.
There has also been much movement in terms of personnel, with Thomas Meyer taking charge of products, Pierre Cuilleret of customers and distribution channels and Alberto Ojinaga becoming Chief Corporate Officer.
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