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Desigual doubles its profits in 2019 achieving a net income of €7.5M
Desigual doubles its profits in 2019 achieving a net income of €7.5M

Desigual doubles its profits in 2019 achieving a net income of €7.5M

The digital channel and sales from outside of Western Europe continue to be key to the company’s transformation plan and now represent 36% of the total turnover. In 2019, Desigual invested €22.8M into implementing its new brand identity in its points of sale, logistics processes and IT, and continues to have a net positive cash flow of over €160M.

Barcelona, 12 March 2020 – Desigual has closed the 2019 tax year with a net profit of €7.5M, a 121.3% increase on the €3.4M recorded in 2018. This result shows the positive impact of the strategic changes that have been adopted over the past year, with stronger decisions and more ambitious goals. Desigual has placed its focus on efficiency and returning to relevance through innovation.

The company has succeeded in improving its profitability thanks to the progress it has made in restructuring its distribution network by prioritising its most profitable businesses — digital channels and areas outside Western Europe — while adjusting its presence in the European retail channel. As a result, in 2019 Desigual has continued to make progress towards its goal of generating 60% of its sales through a combination of the digital channel and the markets in Asia, America and Eastern Europe by 2023; the current figures in this regard already represent 36% of the company’s turnover. The company’s sales figures in these geographies already represent 21.3% of total sales.

At the same time, Desigual has maintained its commitment to growing the digital channel. During 2019, 14.2% of turnover came from this channel thanks to a 7% growth of Desigual.com and e-tailers compared to 2018. Desigual has doubled its efforts in the digital channel by establishing collaboration relationships with the main digital partners and strengthening its own website. The new desigual.com platform was launched last year, which focuses on personalisation, scalability, localisation and mobile sales. Mobile traffic already represents 71% of the total visits to the website.

Desigual has succeeded in doubling its net profit this tax year, while turnover decreased by 10% to €589M, this variation was due to the restructuring of operations in Western Europe. EBITDA reached €55.9M, which equates to 9.5% of sales. Furthermore, the company continues to have a net positive cash flow of €160.5M.

As Desigual’s Managing Director Alberto Ojinaga explained, “In 2019 we accelerated the restructuring of the business while laying the foundations for the repositioning of Desigual through a new brand image and more innovative and creative designs in our collections, through which we aimed to reach out to a younger audience. In 2020, the restructuring of the business will continue to focus all our efforts on growing the digital channel and the geographies outside Western Europe, while we roll out our new brand identity across the world. We are working on restylings and openings in Singapore, Japan and the United States (in New York City and Las Vegas), and in new markets like India and South Africa.”

In 2019, the roll-out of the new corporate identity across international markets was kicked off in Japan, where two new stores were opened in Tokyo and Nagoya. Several countries then followed suit in Latin America – including Peru, Guatemala and Mexico – where Desigual has 47 establishments across 14 countries.

In 2019, Desigual invested €22.8M to support the roll-out of the new brand image across its international markets and to provide the organisation with the logistics and IT processes required to strengthen its omnichannel model. This investment followed the €62M that was invested during the 2016-2018 period.

About Desigual

Desigual is an international fashion brand that was established in Barcelona in 1984. It is famous for the individuality and unique character of its creations, which aim to bring positivity and authenticity to thousands of people who want to express the best version of themselves.

The company currently has a workforce of over 3,700 employees and is present in nearly 90 countries through 10 sales channels, over 500 branded stores and six product categories: Woman, Man, Kids, Accessories, Shoes and Sport.

 

Press contact:

Mireia Sáenz de Buruaga
[email protected]
93 410 82 63 / 620 925 452

Anna Valls
[email protected]
93 410 82 63