Adolfo Dominguez has reported a marked improvement in its financial performance for the first half of the year, with losses decreasing by 43.5% compared to the previous year. The Spanish fashion brand announced losses of €2.8 million ($3.2m) for the period ending in August, down from €4.9 million in the same period last year.
This positive development is largely credited to the brand’s repositioning strategy, which involved streamlining its store operations and sales. Despite the reduction in the number of stores and total sales, Adolfo Dominguez has managed to achieve higher profit margins and a 5.4% increase in like-for-like sales, excluding the impact of new store openings and closures. Total sales for the period amounted to €52 million ($58.9m), a decrease of 4.9%.
While the company incurred one-off costs of €1.1 million ($1.2m) related to brand integration, which affected the overall financial results, Adolfo Dominguez was still able to deliver a better performance than the previous year.
The EBITDA loss for the company reached €1.5 million ($1.7m), the best result for Adolfo Dominguez in the last eight years. Following changes in its management team during the 2016/17 financial year, the brand has seen a significant improvement in its EBITDA, with an increase of €8.3 million (up 85%).
In conclusion, Adolfo Dominguez’s financial performance in the first half of the year demonstrates a promising outlook for the brand. By focusing on enhancing profit margins and like-for-like sales, the company is on track towards achieving financial stability and continued growth.
For more information on Adolfo Dominguez’s financial performance, visit their official website here. Additionally, for insights on the latest trends in the fashion industry, click on this link here.
