- Angela Gonzalez-Rodriguez |
"We are in the middle of a transformation that started in 2015 and we are going in the right direction", summarises the company the status and first results of its strategic restructuring plan.
Alberto Ojinaga, corporate director of the Spanish fashion firm, explained that the future starts to look brighter for the company during the presentation of Desigual’s annual results. Desigual has recorded sales of 761 million euros, closing 2017 with a year-on-year turnover slide of 11.5 percent. Market sources consulted by FashionUnited highlight that this is the third consecutive year in which the company reduces its sales, hoping to see the company turn a page in the second half of 2018.
The benefit - 47 million euros - has also suffered, specifically 33.3 percent over the previous year. Earnings before taxes or ebitda stood at 119 million euros, recording a cut of 28 percent over the previous year.
The results respond according to the company to "the fall in sales in European markets, which account for almost 90 percent of Desigual's business". It should be noted that the Spanish fashion brand has drastically reduced its commercial network in recent months, closing the year 2017 with 500 stores spread across 100 countries.
Desigual's future is to strengthen its commercial network in Latin America
After two consecutive years of closures and cuts, Desigual faces 2018 with optimism, advancing its plans to strengthen its presence in the Latin American market, which has grown 18 percent in 2017.
The online sales channel has also yielded positive figures, increasing sales in its own e-commerce platform by 14 percent.
Desigual is still immersed in a comprehensive restructuring plan, focused on reducing operating expenses and mitigating the decrease in company margins through investment in product quality, optimisation of distribution and an ambitious brand repositioning strategy.