May 4, 2015
2 minutes
OTB (Diesel ) ends 2014 in line with 2013
May 4, 2015
For OTB (Only The Brave), 2014 was a year marked by "consolidation, new strategic directions and the implementation of an important new foundation for the future”, with 57 million euros of investment thrown into the bargain.
Renzo Rosso’s holding company, which, besides its denim brand Diesel, owns the brands Marni, Maison Margiela and Viktor & Rolf, as well as the manufacturer Staff International, ended 2014 with 1.559 billion euros in turnover - in line with 2013 (1,572 million).
"Fluctuations in exchange rates impacted the group, particularly in terms of the yen, a currency in which OTB generates nearly 20% of its turnover," the latter announced in a statement. Geographically, 25% of the company’s sales were made in Asian markets, 20% in the Americas and 55% in the rest of the world, while Italy made up 12% of its total turnover.
The group additionally announced that it generated a net profit of 5.5 million euros last year, as compared to 1.2 million in 2013. However, its Ebitda was down by 14.9% at 117.4 million euros, while its operating profit stood at 42.7 million (-37.3%).
OTB has finally posted a positive net cash position of 105 million euros, plus new lines of credit making up 200 million euros. With this in mind, the company can calmly consider a potential acquisition, if the opportunity were to present itself ...
Diesel remains the group's flagship brand, accounting for 65% of total sales. In 2014, the label underwent major restructuring both in terms of design, with Nicola Formichetti at the helm since 2013, as well as from a business perspective, with the relocation of certain flagship stores such as those in New York and Rome and the streamlining of its wholesale channel.
In terms of brands, OTB continued to reorganize Marni, whose acquisition was finalized in February 2013, while also integrating it into the group. It also gave a boost to Maison Margiela with the hiring of John Galliano as its creative director.
The flamboyant designer offered the niche brand a good deal of visibility, and the impact on sales was felt immediately. The brand, which is managed through the French company Neuf, generated a turnover of around 100 million euros.
Staff International, which produces and distributes products under license for DSquared2, Vivienne Westwood, Marc Jacobs Men and Just Cavalli, recorded "double-digit growth in sales and earnings," said OTB without offering further details.
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