Desigual H1 sales decline 9.6 percent

Desigual performance in the first half of 2017, the company said, was hampered by a drop in multi-brand distribution network and company-owned store sales. Desigual reported revenue of 377.9 million euros (442 million dollars), down 9.6 percent on H1 2016, including a decline of 8.5 percent in Q2 2017.

The company said, H1 decline stems primarily from a decrease in wholesale orders in the multi-brand distribution network for the spring/summer collection, following poor sales of previous collections; and a drop in company-owned store revenue, mainly due to the ongoing rationalization plan.

Desigual expects winter/fall 2017 collection to track the spring/summer collection. The company, however, reported healthy performance in the digital segment, with double-digit sales growth. The digital segment currently accounts for 11 percent of revenue. H1 2017 EBITDA amounted to 54.6 million euros (63.9 million dollars), down 23.6 percent on last year. This decline, the company said, mainly reflects a slowdown in activity, despite the positive impacts of the management strategic plan, which should continue in coming periods.

Picture:Desigual website