Adolfo Domínguez sees 24% increase in sales and returns to profitability
EFE
Roberta HERRERA
The Galician fashion group, Adolfo Domínguez, has reported a 24% growth in sales for the 2022-2023 fiscal year, generating a turnover of 114.2 million euros. As a result, the company has returned to profitability, as reported by company representatives on Thursday.
At a press conference held this morning at its headquarters in the San Cibrao das Viñas industrial park, Adolfo Domínguez executives revealed that the company’s gross margin had risen to 56.8% thanks to the profitable sales generated in the fiscal year from March 2022 to February 2023. They also announced that the company had returned to a net profit of 0.2 million euros, over 1.3 million euros before taxes.
For the first time since 2010, the Galician fashion group has recorded a profit, marking a significant turnaround from the previous year’s losses of 9.3 million euros.
The company reported an Ebitda (earnings before interest, taxes, depreciation, and amortisation) of 13.4 million euros.
Adolfo Domínguez reported that its sales “are experiencing growth in all markets where it operates.” Europe and markets outside of Europe saw year-on-year increases of 21.7% and 30.6%, respectively. The company further highlighted its exceptional performance in Mexico, where it has 128 stores, boasting an impressive 44.7% increase in sales.
Antonio Puente, the CEO of Adolfo Domínguez, stated that the company is “very committed to profitability,” which has enabled it to generate 18% more Ebitda, amounting to 13.4 million euros, compared to the fiscal year before the outbreak of the Covid-19 pandemic.
“We have concluded a successful year, having returned to profitability while experiencing strong sales growth in Spain, international markets, and online,” explained Puente.
During the press conference, Puente and the company’s president, Adriana Domínguez, highlighted that the company was able to consolidate its recovery over the last fiscal year despite the challenges posed by the Covid-19 pandemic and the Russian invasion of Ukraine, which caused major macroeconomic disruptions. Domínguez expressed her satisfaction with the company’s achievements and its ability to overcome these obstacles.
The fashion company celebrated its first profitable year in over a decade, describing it as “a turning point” for its business.
Domínguez reflected on the significance of the positive results, describing them as “symbolic” but also a clear indication that the company has understood the path it needs to take in order to move forward.
The businesswoman and daughter of Adolfo Domínguez outlined several key strategies that have contributed to the company’s recent success, including the “repositioning of stores,” “renewed collections,” the rejuvenation of the brand to appeal to a younger audience as well as making sustainability a top priority.
She also credited the brand’s strength and its ability to offer a product that is more resilient to inflation as factors that contributed to the positive results. She noted that the impact of inflation on the company was not as severe as it was for other companies and industries.
The president emphasised that the company’s success can also be attributed to its various strategies, which include collaborating with influencers, social media campaigns, launching new and updated collections, and implementing a customer loyalty program.
The Adolfo Domínguez group ended the year with 957 employees and 339 points of sale in 18 countries. The company is proud to have a professional staff that is 80% women, with 63% of executive positions on the management committee held by women.
