Adolfo Domínguez sells 39.5% more and reduces losses by 52% in his fiscal year

Adolfo Domínguez sells 39.5% more and reduces losses by 52% in his fiscal year

In his second fiscal semester, he returns to benefits and earns 1.5 million euros
In his second fiscal semester, he returns to benefits and earns 1.5 million euros

Adolfo Domínguez has achieved a net profit of 1.5 million euros in the second half of the year (September 2021 to February 2022), above that obtained in the same period of 2019-2020. The net result for the year as a whole improved by 52%, with a loss of 9.3 million euros .

The Adolfo Domínguez group ends the year (March 2021-February 2022) with a sales volume of 92 million euros, 39.5% more than in the previous year. The company places its operating result (Ebitda) in positive (0.4 million euros), after increasing its margin by 68%. The margin on sales reaches 56%, beating the gross margin of the last pre-pandemic exercise.

Online sales contribute 14% to the company’s revenue, after growing 20% ​​over the year prior to the pandemic and 218% since the firm began its transformation in 2016/17. The innovations introduced in Adolfo Domínguez’s e-commerce include an online personal shopper program that combines its own artificial intelligence R&D program with a specialized team of stylists who assign garments to customers.

The fashion firm grew again in the number of stores this year, reaching 348 points of sale , after opening 24 new stores (3 in Spain and 21 in 4 other countries). The new network has reinforced its international weight with 53% of the stores located outside of Spain. The openings are focused on the Mexican market (17 new stores), the second most important after Spain for the group. Adolfo Domínguez operates in Mexico in alliance with El Palacio de Hierro, one of the largest commercial groups in the country.

Comparable sales (sales in comparable stores, which do not take into account openings or renovations during the year) grew by 43.4% and did so in all markets, especially in Mexico (+67%) and in Spain, Portugal and France (+44%). In the rest of the world (13 countries) the average growth is 26%, while in Japan they increase by 3.4%. Adolfo Domínguez closes the year with 348 stores (6 more than in 2020/21), of which 180 are in Europe; 136 in America; 26 in Asia and Oceania; and 6 in Africa and the Middle East .

“In the second half of the year, with fewer restrictions due to the pandemic, the company has recovered its profitability , obtaining a positive attributable net result, even higher than in the second half of the last pre-pandemic year. Our margin on sales improves on that of 2019/ 20, which has allowed us to end the entire year with a positive operating result (Ebitda),” says Antonio Puente, CEO of the company.

On the other hand, the board of directors has unanimously agreed to propose to the shareholders’ meeting the appointment of Antonio Puente as executive director , it being planned that, once appointed director, he will be appointed as CEO. The appointment strengthens the management team and Adriana Domínguez as executive president, chairwoman of the board and head of the company. The executive tandem will focus on the general lines of growth of the company, with greater international presence, more digital power and greater profitability of its sales growth.

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