- Prachi Singh |
Desigual closed the year 2017 with a turnover of 761 million euros (937 million dollars), a decrease of 11.5 percent compared to the previous year. EBITDA for the year stood at 119 million euros (146.5 million dollars) and net profit was 47 million euros (57.8 million dollars), a decrease of 28 percent and 33.3 percent respectively, compared to the previous year.
The company attributed negative results to the decrease in sales in European markets -which account for almost 90 percent of total sales-especially in indirect channels and the rationalization of the network of distribution that the company carried out in recent months.
Desigual aims for a turnaround in FY18
In 2018, Desigual plans to expand its geographical presence in markets with growth potential such as Latin America, where it has experienced a growth of 18 percent over the previous year. The company also plans to invest in 50 new store openings and renovation of over 50 stores in the coming months. It considers that the company- owned digital channel will also be an important growth channel, where Desigual posted a growth of 14 percent.
“In 2018, Desigual aims to change the negative trend in sales. We are in the middle of a transformation that started in 2015 and we are going in the right direction," said Alberto Ojinaga, Chief Corporate Officer, commenting on the company’s strategy amid negative annual results.
As a part of its brand repositioning plan, the company has roped in Jean-Paul Goude as Artistic Advisor to lead the transformation of the brand image.