Desigual's turnover remains stable in first semester

Desigual's turnover remains stable in first semester

Despite a huge growth in Asia and South America, Spanish clothing brand Desigual had to accept a small turnover decrease in the first six months of 2015, at 451.9 million euro (- 0.2 %).

Large growth in American market

The company's EBITDA however mada a significant drop: the earnings before interests, taxes, depreciation and amortization dropped 26 % compared to last year, to 29.1 million euro. That can be partly explained by the huge expansion costs, but the brand did mention it would also work on becoming more cost-efficient.

 

The company's biggest growth was in South America, with an additional 36 % in turnover, and spurred by that succes it wants to open another 450 stores in this part of the world. Asian turnover also grew a lot, as Desigual's turnover spiked 24 % in the first semester of 2015.

 

Its negative results are closer to home: its home market, Spain, had to deal with a 5 % turnover decrease, while France followed suit with a 4 % drop. Italy was a positive note, up 7 % over the past 6 months.

 

CEO Thomas Meyer will now help revise the company's business plan as it prepares the next step in its growth plan: the brand wants to innovate its organisational structure in order to stimulate product innovation. It also wants to optimize its store network, with store relocations, closures and openings as the necessary steps to be taken.

Questions or comments? Please feel free to contact the editors


Losses keep growing for HelloFresh

14/08/2017

Over the course of the first half of 2017, meal box delivery service HelloFresh has seen both its turnover and its losses grow significantly. This gives mixed messages in the preparation of its IPO, which is planned for the fall of 2017 to create room for more investments.

Italian gelato is European market leader

11/08/2017

Italian cuisine is revered all across the globe, with people often thinking of pizza and pasta. However, Italians also have an ironclad reputation when it comes to ice cream. This is also reflected in sales, because Italians are the European market leader.

Oprah Winfrey and Kraft Heinz join forces

10/08/2017

American tv star Oprah Winfrey has joined forces with Kraft Heinz to develop a range of “healthy and nutritious soups and side dishes”. The range, currently only available in the United States, should help Kraft Heinz generate turnover growth once more.

Ahold Delhaize continues to struggle in Belgium

09/08/2017

Belgian-Dutch supermarket group Ahold Delhaize has had a very good second quarter, with the company thinking last year's merger could result in lower costs than previously anticipated. On the other hand, Belgium's performance is still weak.

Sainsbury’s wants to cut 1,000 jobs

07/08/2017

Sainsbury’s, the second largest supermarket chain in the United Kingdom, is allegedly planning to cut 1,000 office jobs in order to save up to 500 million pounds (550 million euro).

Higher Kraft Heinz profit despite lower turnover

04/08/2017

Food company Kraft Heinz’ second quarter like-for-like turnover dropped slightly, but the American company did manage to seriously enhance its profitability.

Back to top