Adolfo Dominguez narrows first-half losses by 36%
today Oct 25, 2019
Adolfo Dominguez narrowed losses to €1.8 million ($2m) in the first half of the year ended August, representing an improvement from €2.8 million a year earlier, according to the company’s latest accounts. Sales increased slightly by 0.9% to €52.5 million ($57.4m).
Ebitda profits reached €3.3 million ($3.6m), compared to Ebitda losses of €1.5 million in the first half of 2018. For Adolfo Dominguez, this was the best Ebitda result in nine years, boosted by a change in accounting standards.
In comparable terms, sales at the Spanish clothing label increased 7.3% during the period, with increases across all geographies.
In Spain sales grew 4.9%, while Mexico, which is the brand’s second largest market, reported a like-for-like sales increase of 14.9%. Revenues also jumped 4.9% in Japan and 5.9% in the rest of the world.
“The good performance of like-for-like sales and the e-commerce business allow us to integrate the decrease in commercial space following the merger of our brands in the second half of the year,” CEO Antonio Puenta said in a statement.
He added that the programme of store openings, closures and relocations, coupled with a streamlined management and a cost-cutting plan, have helped the company’s remaining stores to perform better, “which is reflected in the Ebitda result.”
Adolfo Dominguez closed three stores in Spain during the period, and opened nine new global locations, of which five were in Mexico, two in Portugal, one in China and one in Russia. It currently has 386 stores in 22 countries.
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