Presenting 2014’s balance sheet – its financial situation and future plans – Renzo Rosso, President of OTB Group stated, “The Group is solid and we are working hard to redesign the Diesel brand from scratch in terms of a total upgrade and distribution network,” observes Rosso. Diesel represents 65% of the group’s sales and the group has made a bold move by cutting its distribution for about € 85 million wholesale (about € 250 million retail). The company wants to give new energy to this brand and Rosso shared that how Margiela, Marni, Dsquared2 and the other brands are all growing and registered a yearly double digit growth. by end of 2015, Diesel will sell about € 950 million and the management expects it to reach about € 1 billion by the end of 2016.
The major focus of the group is to concentrate on significant new store openings. between new openings, redesigns and relocations, the company will open 120 new stores by 2018 which would be strong and impactful stores. “In September 2015, we will open a 300 sq. metres store at madison Avenue, in new york after closing our Fifth Avenue one. In Shanghai, we have already opened the most spectacular 1,600 sq. metres flagship store in Kerry Center; being designed as a huge and impressive Diesel home,” informs Rosso. The 1,800 sq. metres milan store will be totally redesigned and rebuilt; the work will start at the beginning of 2016 and will take a while because the store would be completely changed with the support of a team of Japanese architects.
OTB closed 2014 registering net revenue of € 1.56 billion, similar to 2013’s € 1.57 billion, though significantly increasing its net profit to € 5.5 million, which was € 1.2 million in 2013. However, its EBITDA was down by 14.9% at € 117.4 million, mostly due to exchange rates compared with 2013 since yen’s recent devaluation and Japan represents 20% of the group’s revenues. OTB has finally posted positive net cash position of € 105 million plus new lines of credit, making up to € 200 million. The company might also consider the acquisition of a new brand.
