Desigual records 9% surge in net profit | Retail News Spain
Home » News » Retailers News » Desigual Records 9 Surge In Net Profit

Desigual records 9% surge in net profit


READ MORE ON Apparel RetailerFinancial ReportRetailer News SpainRetail Information

Desigual Store

Image Courtesy:

Desigual, a Spanish apparel brand which is known for its patch work designs and intense prints, has announced its full year financial report for the year 2016. It has noticed a net profit of Euros 71 million (US $ 76 million), up 9 per cent when compared to the previous fiscal year. However, revenue for the brand plunged 7.8 per cent to Euros 861 million (US $ 925 million).

Alberto Ojinaga, Chief Corporate Officer, Desigual said, “The company achieved the profit growth despite a reduction in sales and EBITDA due to its 2016-17 strategy and the fact that provisions set aside in 2015 to cover for the company’s transformation process were not needed last year.”

The company’s net cash position increased by Euros 83 million to Euros 381 million (US $ 409 million) – the biggest monetary reserve they has ever had, according to Ojinaga. Strong liquidity improvement, with an “extremely healthy” cash position and growing profits will help the company go through its transformation process with a certain degree of saturation, Alberto underlined.

The clothing brand saw the sales drop in its core market Europe, where currently the retailer has its 90 per cent of customer base, on the other hand company faces the considerable revenue surge in Latin America.

Also ReadMacy’s announces fourth quarter results

The apparel brand is undergoing a revamp that will see its brand identity and design update based on a greater understanding of its consumers. In the previous year, Desigual introduced seven new outlets and closed 37 out of 500 stores of company, globally.


Have some news? Let us know on

Comments are closed.

Recommended by Apparel Resources invests £ 315.5 million in Farfetch

A strategic deal has been inked between Farfetch, a global fashion e-commerce platform and, one of China's biggest e-commerce companies, to help...

Nordstrom Rack to open in Wisconsin (US)

Nordstrom, US-based leading fashion specialty retailer, has announced to open a Nordstrom Rack store at Bayshore Town Center in Glendale, Wisconsin, USA. The...

Sears Canada files for bankruptcy

Sears Canada Inc. has announced that Sears Canada and certain of its subsidiaries have applied in Ontario Superior Court of Justice (Commercial List)...

Old Navy opens maiden store in Vietnam

Fashion brand Old Navy has opened its first store in Vietnam. The store, which is located on the lower B1 floor of Vincom...

The Children’s Place to open stores across Southeast Asia

The Children’s Place, the largest pure-play children’s speciality apparel retailer in North America, is all set to unveil new stores across Southeast Asia....

Burberry’s Chairman to depart

Sir John Peace, who has been the Chairman of UK-based global luxury brand Burberry since 2002, is likely to depart from the company...

Amazon India sees rise in demand for yoga fashion merchandise

E-commerce giant Amazon has witnessed increase in demand for yoga fashion merchandise in Indian market. The retailer has seen a growth of over...

Amazon now lets you try clothes before buying!

Buying clothes online sometimes becomes painful as the pair of shirt and trousers you bought, might just not fit. And then comes even...

Dollar General names new EVP & CIO

Dollar General Corporation, an American chain of variety stores headquartered in Tennessee, has announced appointment of Carman Wenkoff as Executive Vice President and...

C&A Europe appoints new CEO

COFRA Holding has announced appointment of Alain Caparros to the position of Chief Executive Officer (CEO) for its C&A Europe retail business, effective...