International fashion group OTB has reported lower sales for the last fiscal year, as the strong performance of Maison Margiela was more than offset by weakness in the wholesale channel.
The group’s net sales for the year ended December 31 stood at 1.6 billion euros ($1.89 billion), representing a 5 per cent decline in constant currency. Turnover was also down 4.8 per cent to €1.7 billion.
Maison Margiela was the highlight during the year with an 8.4 per cent growth. The group did not specify the growth rate of other brands, namely Diesel, Jil Sander, Marni, Viktor&Rolf and Brave Kid. It did note that Diesel improved profitability significantly, recording its best result of the past ten years, thanks to recent investments.
Sales at the retail channel slid 2.6 per cent during the year, while wholesale sales plunged 14.7 per cent.
By geography, North America grew 5.9 per cent and the Middle East rose 9 per cent. Japan, which remains a key market for the group, saw “resilience” amid a complex economic situation, while China and Europe suffered a slowdown.
On the bottom line, annual EBITDA amounted to 237.3 million euros.
During the year, the group renewed its agreement with Dsquared2 for five years. It also renewed for a further five years the distribution agreement for the Amiri brand in Japan.
“[Last year] will likely be remembered as one of the most challenging years for the fashion sector,” commented CEO Ubaldo Minelli. “In this context, I am particularly proud of the resilience demonstrated by the OTB Group.”
“We will continue to focus on products and the supply chain, which have always been a strategic asset for our long-term sustainable development,” Minelli added.
- Further reading: Diesel parent OTB posts lower sales despite strong DTC growth
