Jan 20, 2023
Adolfo Domínguez reduces losses by 80% and increases sales by 23%
Jan 20, 2023
The Spanish fashion group Adolfo Domínguez suffered losses of 2.16 million euros in the first nine months of its fiscal year (from March to November), 80% less than the 10.8 million euro deficit recorded in the same period of the previous fiscal year, driven in part by an increase in sales of more than 20%.
As reported by the company to the Spanish financial regulator, the CNMV, on Friday, its EBITDA or gross operating profit for the period stood at 7.8 million euros, representing its sixth consecutive quarter in the black.
The brand's sales grew in all the markets in which it operates during this period, increasing by almost 20% in Europe, driven mainly by Spain, and by 32.5% in the rest of the world, particularly in Mexico, its main market outside Europe.
Gross margin reached 61.2%, four percentage points higher compared to the same period last year, with operating costs up 2.3% to 39.4 million euros.
At the end of November, the firm opened a new shop in the Marais district of Paris, the city where it opened its first shop outside Spain in 1985.
More than half of Adolfo Domínguez's points of sale (55%) are located outside Spain, with 189 of its 343 shops spread across 19 countries.
In its constant search for digitalisation and innovation, the brand began testing clothing rental last December, with a capsule collection available on a specialised online platform.
This initiative is in line with other projects launched by the brand that combine sustainability and technology, such as live shopping on social media, a new streaming sales model. The brand has also created a 'living app' available on a TV platform, an application that allows access to a variety of content via the TV without the need to download content.
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