Adolfo Domínguez, the Spanish designer company, faced a challenging year in 2019, reporting a loss despite an overall revenue growth of 2.6% to €115 million ($127m). This loss can be attributed to a change in accounting method, which resulted in an annual loss of €8.3 million ($9.1m). However, even without considering this accounting change, the company still reported a profit of €700,000.
Despite the loss, there were positive aspects for Adolfo Domínguez. Full-year revenues showed an increase of 2.6%, with like-for-like sales growing by 5.9%. This growth is particularly impressive considering the closure of 154 stores over the past four years. Additionally, online sales experienced significant growth of 25.5% compared to the previous year, now representing between 10% and 15% of total revenues.
Adolfo Domínguez saw sales growth across all 22 geographies, with Spain outperforming the wider retail market. Like-for-like sales in Spain increased by 3% while the overall market experienced a 1% increase. The company also performed well in international markets, with Mexico leading the way with a growth rate of 9.5%, followed by Japan at 9% and Europe at 4.9%.
Profit on an Ebitda basis rose for the second consecutive year, reaching €11.3 million. The pre IFRS16 Ebitda profit of €2.2 million indicates a significant increase from the same period in 2018.
While the impact of the coronavirus pandemic on Adolfo Domínguez was not explicitly stated, CEO Antonio Puente hinted that forecasts regarding the crisis would be provided at a later date. With some stores reopening, it is still too early to assess the full effect of the crisis on the company.
To navigate through the crisis, Adolfo Domínguez’s newly appointed president, Adriana Domínguez, unveiled the company’s artificial intelligence project known as ‘ADN’. This project combines technology and personal styling to provide customers with a personalized shopping experience. As physical stores remain a concern for cautious shoppers, ‘ADN’ allows customers to receive a curated selection of items to try on at home.
The company also made strategic moves to strengthen its management team in 2019, hiring and promoting four new executives. These appointments include José Carlos Lorenzo García as the director of global retail, Manuel Garrido Haz as the finance director, Carlos Arjiz García overseeing brand communication and visual merchandising, and Miguel Vázquez Caride as the IT director.
During the Covid-19 crisis, Adolfo Domínguez placed over 80% of its workforce on furlough. However, as stores gradually reopen, employees are expected to return to work. The reopening phase is anticipated to continue until June 2021.
Overall, despite a loss in 2019, Adolfo Domínguez showcased positive revenue growth and success in both the domestic and international markets. With the implementation of innovative projects like ‘ADN’ and a strengthened management team, the company is poised to navigate through the challenges brought on by the Covid-19 crisis.
– For more information on Adolfo Domínguez and its products, visit their official website here.
– To stay updated on the latest news and developments in the fashion industry, check out a reputable fashion news source like Vogue here.