Spanish fashion group Adolfo Domínguez cuts quarterly losses by 20%
today Jul 16, 2018
Spanish fashion group Adolfo Domínguez recorded losses attributed to its main company of €2 million in the first quarter of the 2018 financial year (March to May). However, the losses were 20.3% lower than those recorded in the same period of the previous financial year.
The group also said that it achieved its best EBITDA result in a first quarter in six years, posting a 50.5% improvement and recording a loss of €929.000, compared with €1.8 million in the first quarter of the 2017 financial year.
The Adolfo Domínguez group generated sales of €21 million between March and May 2018, a 7.2% downturn, though comparable sales (without taking into account store openings, closings and renovations) were up 4.2%. Of the total revenue, 78.3% was generated by the group’s main, eponymous brand.
The Spanish group further announced that it has reached an agreement with trade unions regarding the number of job cuts involved in the restructuring process it heralded last May, when it began to merge its labels under one single brand.
Compared to the initially forecast 110 lay-offs, with another nine workers affected by substantial employment changes, the number of jobs that will eventually be cut is 56, about half what was originally estimated.
The agreement reached with the trade unions will allow the group to operate from the autumn with one single brand, Adolfo Domínguez, and the stores selling the AD+ and U Woman lines will merge with it.
As of the end of May, the Spanish fashion group operated 470 stores in 29 countries worldwide. Of these stores, 49% were located outside Spain. The label’s aim is for the number of stores outside Spain to exceed the number of domestic stores by the end of 2019, according to the group’s COO Antonio Puente.
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