Adolfo Domínguez reported losses of € 2.7 million in the third quarter, which is € 0.7 million less than at the end of the first half of the fiscal year, but 27 per cent more than a year ago.
The Spanish fashion company, during the period encompassing March to November 2023, achieved a cumulative revenue of € 83.8 million and saw its sales escalate by 13.2 per cent compared to the same period in the previous year.
The brand attributes its net accumulative losses on “the sector’s seasonality and the substantial investment linked to the company’s growth and digital transformation.”
Meanwhile, it recorded € 27.2 million in revenue and € 0.7 million in profit for the most recent quarter (September to November), indicating “two consecutive quarters of positive net profit.” Furthermore, it reported an EBITDA of € 4.9 million during this time, and up until November, the total EBITDA was € 9.7 million, a 25.2 per cent increase over the prior year.
“We added another quarter of strong performance. Sales continue to grow at a double-digit pace, and we are consistently improving our profitability. Our focus remains on rejuvenating our retail network with premium locations while reaching new online audiences that drive our e-commerce,” remarked Antonio Puente, the CEO of the group, in a statement.
Comparable sales increased by 8.4 per cent over the first nine months of the fiscal year, despite a 13.2 per cent increase in Adolfo Domínguez’s total sales. Market sales increased by 10.5 per cent in Europe but by 19.9 per cent outside the region. The brand had 356 locations operating in 23 countries at the end of the period, including 169 stores in five European markets, 132 in Mexico, 20 in Japan, and 35 in other regions where it is present.
Between March and November, the gross margin climbed to € 51.3 million from € 45.3 million the previous year, while the operating expenses as a proportion of sales dropped by 1.1 per cent to 49.6 per cent.
The company also highlighted, in its results presentation, the outstanding performance of online sales, which grew by 25 per cent in the first nine months of the fiscal year. In the last complete fiscal year (2022-2023), Adolfo Domínguez achieved a total revenue of € 114.2 million.
