Spanish fashion brand Adolfo Domínguez has announced a substantial decrease in sales and a net loss for the nine-month period ending in the third quarter of 2020. This decline is attributed to the impact of the Covid-19 crisis. Sales during this period amounted to 40.5 million euros, marking a significant 47.1% decrease compared to the previous year. As a result, the company reported an operating loss of 5.6 million euros and a net loss of 14.9 million euros, a stark contrast to the operating profit of 5.5 million euros and net loss of 2.1 million euros recorded in the same period in 2019. Adolfo Domínguez has already communicated these results to Spain’s Comisión Nacional del Mercado de Valores.

Despite the overall decline in sales, Adolfo Domínguez did experience growth in its online revenues, which increased by 28.2% and accounted for 19.3% of total sales. However, the increase in online sales was not enough to offset the losses experienced at the physical stores. Between September and November 2020, 39% of Adolfo Domínguez stores faced reduced opening hours and other restrictions due to the second wave of the pandemic. Consequently, 43% of the company’s workforce has been placed on the ERTE furlough scheme.

Adolfo Domínguez’s CEO, Antonio Puente, acknowledged the ongoing challenges presented by the coronavirus crisis and emphasized the company’s commitment to maintaining liquidity and solvency until business conditions improve. Currently, the brand operates 348 points of sale in 18 countries and has witnessed sales declines across all markets. In the fiscal year 2019-2020, the brand employed 1,209 people.

The fashion industry as a whole has been severely impacted by the Covid-19 pandemic, with numerous brands and retailers experiencing significant declines in sales and financial losses. Physical stores have been particularly affected due to lockdown measures, reduced foot traffic, and changing consumer behaviors. In response, companies have had to adapt their strategies by increasing their online presence and implementing cost-saving measures to mitigate the effects of the crisis. Adolfo Domínguez’s latest financial results exemplify the ongoing challenges faced by fashion brands and underscore the importance of navigating these difficulties to ensure long-term success.

[Link 1: Read more about Adolfo Domínguez’s financial results](https://www.adolfo-dominguez.com/es-es/prensa-e-inversiones/rs/epc/aa-2020-2021)

[Link 2: Explore the impact of Covid-19 on the fashion industry](https://www.businessoffashion.com/articles/intelligence/fashion-leaders-outlook-2021)