In 2020, OTB, the parent company overseeing iconic fashion brands like Diesel and Maison Margiela, faced a significant decline in sales and profits due to the widespread impact of the COVID-19 pandemic. This setback came after the company had achieved a return to profitability in the previous year of 2019. Despite these challenges, the Italian fashion conglomerate remains hopeful and positive about what lies ahead. Alongside Diesel and Maison Margiela, OTB also boasts ownership of Marni, Viktor & Rolf, and Amiri, as well as manufacturer Staff International and Brave Kid. The company is currently eyeing a potential acquisition of Jil Sander, showing strong confidence in its ability to thrive in the future.
To navigate through the crisis, the group swiftly implemented cost-cutting measures and cash preservation strategies to stay afloat. The consolidated turnover for the year dropped by 14.3%, reaching €1.317 billion, while net sales amounted to €1.238 million. This decrease nullified the 6.5% turnover increase seen in the year before. Despite the challenges, OTB managed to report an EBITDA of €176 million and an EBIT of €13.5 million (down from €17.7 million in 2019). Excluding the €21.1 million set aside for pandemic-related provisions, the EBIT figure would exhibit a significant year-on-year rise.
Unlike many industry counterparts who suffered losses in 2020, OTB maintained profitability despite the decline in sales. The company’s online sales through its own web stores surged by 26% in the preceding year. The launch of the Moon omnichannel platform and the heightened contribution of e-commerce sales propelled growth for the Diesel brand, nearly doubling its share from 7.9% to 13.3%. When factoring in e-tail sales via third-party websites, the total percentage came to 24% for the Diesel business.
In response to the crisis, OTB ramped up its digital efforts and embraced a sustainability plan to tackle societal and environmental issues head-on. Margiela emerged as a standout performer with a 20% spike in revenues as the brand expanded its presence across various channels and regions. The company attributes this growth to strategic investments in the brand’s future, underscoring its confidence in Margiela’s projected performance for the upcoming year.
Despite the hurdles posed by the pandemic, OTB displays resilience and optimism towards its future growth and profitability. Fueled by digital advancements and the strong performance of brands like Margiela, the company is well-positioned to navigate the evolving landscape of the fashion industry.
For more information on OTB and its brands, visit OTB Official Website.
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