Desigual has ended 2016 with net profit of 71 million euros ($76 million), up 9% on the previous year, but revenue dropped by 7.8% to 861 million ($925 million), announced the company on Friday.

The Spanish company said the revenue drop reflected a sales decline in its European markets, which currently account for 90% of sales, however there was an increase in revenue outside Europe, especially in Latin America.

EBITDA for the period was also down, dropping by 17% on 2015 to 166 million euros ($178 million) as a result of lower revenue, unfavourable currency movements and increased investment in quality fabrics and materials.

Desigual’s chief corporate officer Alberto Ojinaga, told Europa Press that the company achieved the profit growth despite a reduction in sales and EBITDA due to its 2016/17 strategy and the fact that provisions set aside in 2015 to cover for the company’s transformation process were not needed last year.

The company’s net cash position increased by 83 million euros to 381 million ($409 million) – the biggest cash stockpile the company has ever had, according to Ojinaga.

The COO said this strong liquidity improvement, with an “extremely healthy” cash position and growing profits, will help the company go through its transformation process with a certain degree of stability.

The brand is undergoing a revamp that will see its brand identity and design updated based on a greater understanding of its consumers.

Last year, Desigual opened 7 stores and closed 37, and this year the business plans to continue closing stores as part of a restructuring of its property portfolio, which Ojinaga described as “small” considering that it owns more than 500 stores worldwide.

As part of this plan, the Barcelona-based company has announced the appointment of David Meire as new chief client officer. He will focus on consumers and help spearhead change in the business.

Meire, who has extensive experience in the fashion and retail industry, will be joined by Alberto Ojinaga and CEO Thomas Meyer in the development of strategies aimed at better targeting consumers.