Desigual suffers 3% decline in sales in 2015

By

Triana Alonso

Published
Feb 21, 2016

2015 was a difficult year for many retail brands, with Desigual proving to be not an exception. After several years of rapid growth, the Spanish company has begun to show signs of trade stagnation. According to our sources, Desigual recorded a turnover of only 934 million euros in 2015, down by 3% compared to 2014.

The latest numbers released by the brand, after Eurazeo’s purchase of a 10% share of its business in 2014, already revealed a slowdown, marked by the decline in store openings. In the first two quarters of 2015, the brand saw its trading fall flat but revenue fell by 2,2% in the third quarter to 724.7 million euros.

Gone are the company’s golden years. Founded in Ibiza in 1984, the brand saw sales rise by 46.7% in 2010, while in 2011 it recorded sales growth of 28.6% to 566 million. A year later, sales jumped by 24.6%. In 2013, however, the brand’s patchwork style began to lose its bright colors with sales growing only by 17%.

In May last year, Desigual’s CEO, Manel Jadraque, departed from the company. Since then, Desigual has restructured its management board, slowed down opening stores and reviewed its distribution network. 

Triana Alonso & Bruno Joly