Jan 19, 2021
Adolfo Domínguez posts 47% drop in sales, net loss of 15 million euros
Jan 19, 2021
Sales at Spanish fashion brand Adolfo Domínguez totalled 40.5 million euros from March to November 2020, a decrease of 47.1% compared to the same period in the previous year, according to the company.
Due to the impact of the Covid-19 crisis, the brand posted an operating loss of 5.6 million euros and a net loss of 14.9 million euros in the nine-month period ending in the third quarter, compared to an operating profit of 5.5 million euros and a net loss of 2.1 million euros in the same period in the previous year.
The company has communicated its results for the third quarter of the fiscal year 2020-2021 to Spain's Comisión Nacional del Mercado de Valores.
In a press release, the brand explained that its online revenues grew 28.2%, representing 19.3% of total sales, although this was not enough to offset declines at physical stores.
In addition, the company stated that, from September to November 2020, 39% of its stores were subject to reduced opening hours and other restrictions due to the second wave of the pandemic.
The economic situation led the company to maintain ERTE (Expediente de Regulación Temporal de Empleo) furloughs for 43% of its workforce.
"The coronavirus crisis continues to be a determining factor on a day-to-day basis, even more so for companies such as ours, which has an important social element and whose activities are affected by the evolution of consumption. Faced with restrictions on commerce and movement, we are taking all necessary measures to guarantee the liquidity and solvency our company until business conditions reestablish themselves," explained Adolfo Domínguez CEO Antonio Puente.
The company, which operates 348 points of sale in 18 countries, saw its sales fall across all of its markets. In the fiscal year 2019-2020, Adolfo Domínguez employed 1,209 people.
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