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Desigual sees first half revenue tumble 14.5%

Translated by
Barbara Santamaria
Published
today Jul 27, 2018
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Spanish clothing brand Desigual, known for its patchwork designs, has ended the first half of the year with revenue of 323 million euros, down 14.5% on the same period in 2017.

Miranda Makaroff x Desigual - Desigual


According to the company backed by Eurazeo, the results are “due to sales weakening in the markets where it operates”, a downward trend that had already appeared in the previous year, as well as the launch of a new strategy that involved reviewing the product and store estate and building a new brand image.

The transformation and restructuring plan was kicked off three years ago and is expected to complete by 2020. A crucial part of this strategy is the review of the store portfolio, which has led to the closure of 50 Desigual stores around the world. The company founded by Swiss entrepreneur Thomas Mayer had 500 locations by the end of the first half of 2018, compared to 552 in 2015.

Also part of the 2020 strategy is the brand’s e-commerce platform, with the company trying to boost its online channel to offer a better and more integrated customer experience. In this effort, its latest capsule collection with Christian Lacroix launched exclusively online. As for its expansion, Latin America has emerged as a priority market after reporting “positive numbers”, the brand said.

Founded in Barcelona in 1984, Desigual currently has a presence in 100 countries across eight product categories, including women’s men’s and childrenswear, accessories, footwear, living, sportswear and beauty. The company has seen its sales continue to fall since Eurazeo acquired a 7.4% stake in the business in 2014.

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