Spanish fashion chain Desigual suffered a blow in the first three quarters of 2017, with turnover down more than 10 %. It mainly struggled in Europe, a region where it generates almost all of its turnover.
Growth in Latin America
Desigual’s third quarter turnover dropped 12.1 %, even worse than the – 9.6 % slump from the first half of 2017. Over the three quarters combined, the chain generated a 603.8 million euro, down 10.6 % compared to the year before.
The company suffered in Europe, where it generates 89 % of its turnover, and that weighed down its total turnover. The setback in Europe is largely because of lower order numbers from multi-brand stores for its fall and winter collections. It also forecasts a similar trend for its upcoming spring and summer collections. The chain did achieve growth in Latin America, but that region only contributes 2 % to its overall result, which means its growth remained largely below the radar.
Jean-Paul Goude was hired in September as the chain’s new artistic director, in an attempt to get things back on track. He already displayed his first capsule collection during the recent New York September Fashion Week.