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OTB net profit declines 36 percent in 2015

By Prachi Singh

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Business |REPORT

OTB (Only The Brave) has said that major developments within the company such as restructuring of the parent company Diesel, acquisition of Marni in November last year and currency headwinds negatively impacted its net profit during fiscal 2015. The company reported 36 percent decrease in net profit for the 12 months ended December 31, 2015, from 5.5 million euros (6 million dollars) to 3.5 million euros (3.8 million dollars).

However with brands such as Diesel, Maison Margiela, Marni and Viktor & Rolf and manufacturing units Staff International and Brave Kid under its fold, the company closed 2015 with 1.590 billion euros (1.752 billion dollars) in revenue against 1.560 billion euros (1.719 billion dollars) reported last year. Gross operating income was 74 million euros (81.5 million dollars) in 2015 compared to 117.4 million euros (129.3 million dollars) of the previous year.

The company carried out major realigning process at Diesel’s wholesale distribution network, which it feels would have a positive impact on the results ahead, however strong dollar continues to be a cause of worry..

In a bid to make a turnaround at Diesel’s wholesale chain around the world, OTB invested in artistic director Nicola Formichetti’s goal to reboot, elevate and reinvent the brand by refurbishing the store network. As a part of its strategy, the company followed the new store concept for its new Madison Avenue store in New York. Diesel’s ecommerce initiatives are also garnering positive results with the company registering double-digit growth. Renewal of its licencing agreement with Fossil, resulted in its turnover coming to 200 million euros (220.4 million dollars).

In November, OTB acquired majority stake in Italian fashion house Marni. Last year witnessed new store openings for this brand in Milan, London and San Francisco. Marni also inked a license deal for the production and distribution of the brand’s men’s wear line with Staff International, last year.

OTB