Nov 25, 2022
Adolfo Domínguez cuts losses by 75% to €2.7 million
Nov 25, 2022
The fashion company Adolfo Domínguez lost €2.7 million in its first fiscal half-year, from March to August, which represents a 75% reduction in losses compared to a year earlier (-8.1 million), driven by revenue growth.
The group's sales grew by 27% in the first half of fiscal year 2022/23 to €49.6 million, according to the accounts submitted to the Spanish National Securities Market Commission.
Revenues increased by 25.4% in the European market, with Spain leading the way, and by 32% in the rest of the world where the brand is present.
In addition, gross margin on sales stood at 59.2%, its highest since 2014.
On the other hand, the brand recorded a gross operating profit (ebitda) of €4.3 million against a negative result of €5.6 million a year earlier.
In fact, the company has now posted five consecutive quarters with positive Ebitda.
Adolfo Domínguez has also indicated that it is continuing to optimize its retail network. The group currently has 345 points of sale in 19 countries, 55% (156 locations) of which are outside of Spain. Store openings in the first half of the year were concentrated abroad, with three new stores in Cyprus and another three in Japan.
According to Antonio Puente, CEO of Adolfo Domínguez, the company's efficiency and profitability figures underpin its recovery and growth. He also indicated that the group is becoming less dependent on promotions and that margins are recovering despite the current macroeconomic environment.
The brand is continuing to rebrand its retail network by opening emblematic spaces such as its new flagship store located at number 40, Serrano Street in Madrid.
The company's online sales are spread across 29 countries and further progress in the internationalization of its online store will go hand in hand with its entry into various marktetplaces.
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