- Prachi Singh |
Desigual reported revenue of 860.5 million euros (925 million dollars) in 2016, down 7.8 percent compared to 2015, with sales declining 11.1 percent in the fourth quarter. The company said, the trend continues during the first two months of 2017 and the decrease for the full year, which impacted all channels, also reflected the ongoing rationalization of the retail store network and the closing of some stores in 2016, which will be pursued in 2017.
In 2016, Desigual also strengthened the management team, hiring Alberto Ojinaga as Chief Corporate Officer. The company implemented a comprehensive two-year cost savings plan and finalized and implemented the new strategic plan. Desigual expects the first results from the strategic plan to be visible in the second half of 2017.
Revenues outside Europe rise 1 percent
With 523 point of sales as of December 31, 2016, the company said, its revenues suffered from the poor performances in European countries. Outside Europe, the group sales performance was overall positive, posting a revenue rise of 1 percent compared to the previous year.
EBITDA amounted to 166.4 million euros (179 million dollars), down 16.8 percent against the last year. Desigual added that devaluation of the euro against the US dollar weighted on the profitability of the group during the whole year 2016, as significant part of products is sourced in US dollar while revenues are mainly euro denominated. However, the implementation of the efficiency plan helped to partially compensate the erosion of the profitability.
Desigual hires new Chief Client Officer
Desigual also announced the recruitment of a new Chief Client Officer, David Meire Hernandez. He started his career at Arthur Andersen. Since 2000, he has held several positions at Nike, where he was responsible for Nike's football business in Europe and led in the past two years the direct to consumer strategy and organization for Europe.
Created in Spain in 1984, the Desigual fashion brand designs and distributes clothing and accessories for women, men and children.