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.