Desigual: sales decline over nine months
today Nov 17, 2015
After a slight downturn in the first six months, the Spanish retailer experienced a 5.2% slump in sales in the third quarter. Over the course of nine months, total revenue amounted to €724.7 million, equivalent to a 2.2% decrease.
The brand's established markets, France and Spain, have reportedly declined by 8% and 6%, respectively. Pointing in the same direction is the impact of the slowing down of new store openings. At the start of the year the retailer launched into a streamlining of its network.
"The group's in-depth review initiated by the management, covering operations, product innovation, customer relationships and the optimisation of the store network, is ongoing, and its objective is to create the basis for future growth," the top management has stated. "As of 30th September 2015, Desigual has a net cash position of €258.2 million."
After the first six months, the retailer posted a revenue of €451.9 million, marginally below the figure of €452.9 million recorded a year earlier.
The result was however far from the 16.2% growth achieved over the full 2014 fiscal year, which generated €963.5 million in sales, 20% of which coming from Spain. Net income at the time grew by 3%, reaching €135 million.
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