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Desigual approaches 1billion sales mark

By Angela Gonzalez-Rodriguez

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Business

Spanish fashion brand Desigual is fastly approaching the coveted 1 billion euros sales mark. Full-year turnover came in at 963.5 million euros, up 16.2 percent. The result is in line with the strategic plan accomplished by the company, which aims to double its size within five years.

Earnings before taxes, amortisation and depreciation (EBITDA) was better than a year ago, standing at 261.5 million euros, up 8 percent compared to 2013 and representing a margin of 27.1 percent.

The second half was characterised by strong investments in new stores opening and an increased promotional activity motivated to cope with the unusually warm autumn / winter 2014.

Meanwhile, net profit after tax represented 14 percent of net sales (3 percent more than in 2013).

Eurazeo’s money serving to speed up international expansion

As stressed by the company earlier this week, ​​the five major European markets have achieved double-digit growth, worthy of a special mention that of Italy. The results in other geographical areas, where Desigual plans for steep future growth, were "extraordinary". This was the case of Asia, which grew 24 percent in 2014 mainly driven Japan.

It is worth to remember that extra cash gained with Eurazeo´s investment in 2014 – which acquired 10 percent of the quirky fashion brand for 285 million euros – has been put against the reinforcement of brand’s internationalisation. Nowadays, about 80 percent of Desigual’s business is conducted outside its national market.

"These results reinforce the growth and financial strength of the company, which continues its traditional policy of zero debt and a net cash position of more than 220 million euros", stressed Desigual in a statement.

Desigual