Adolfo Domínguez incurred loss of 2.7 million euros in the third quarter, but increased sales by 13.2%

By

Eva Gracia Morales

Translated by
Roberta HERRERA

Published
Jan 18, 2024

Adolfo Domínguez reported losses of 2.7 million euros in the third quarter, which is 0.7 million euros less than at the end of the first half of the fiscal year, but 27% 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 euros and saw its sales escalate by 13.2% compared to the same period in the previous year.

The Galician brand believes that its net accumulative losses are due to "the seasonality of the sector and the significant investment associated with the company's expansion and digital transformation."

Concurrently, it stated that in the last quarter (from September to November), it reported a revenue of 27.2 million euros and generated a profit of 0.7 million euros, thus marking "two consecutive quarters of positive net profit." Additionally, during this period, it recorded an EBITDA of 4.9 million euros, and the accumulated EBITDA until November stood at 9.7 million euros, representing a 25.2% increase compared to the previous year.

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"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. The company presented its quarterly results before the National Securities Market Commission (CNMV) on Thursday.

While Adolfo Domínguez's total sales increased by 13.2% in the first nine months of the fiscal year, comparable sales grew by 8.4%. By markets, sales in Europe rose by 10.5%, whereas beyond the continent, they surged by 19.9%. At the end of the period, the brand operated 356 stores across 23 countries: 169 retail outlets in five European markets, 132 in Mexico, 20 in Japan, and 35 in other markets where it is present.

Finally, the gross margin from March to November also increased to 51.3 million euros (compared to 45.3 million euros a year earlier), and operating expenses as a percentage of sales decreased by 1.1% to 49.6%.

The company also highlighted, in its results presentation, the outstanding performance of online sales, which grew by 25% 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 euros.