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Desigual keeps growing but at a slower pace

By Angela Gonzalez-Rodriguez

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Spanish fashion label Desigual keeps growing, although at a slower pace. The fashion group reported a turnover of 273.5 million euros over its first fiscal quarter, 6.5 percent more than in the same period of 2014, mainly due to the opening of new stores and points sale.

Eurazeo, the French investment fund which last year invested 285 million euros to buy a 10 percent stake in Desigual, notes in a recently released report that over the first quarter, growth was "moderate", considering that the company's sales increased by 16.2 percent between January and March 2014.

According to Eurazeo, this slowdown in revenue growth is explained mainly by two factors: a high rate of penetration in mature countries and a contribution from the new markets remains limited.

In this vein, Desigual has launched a "review" of its sales network to boost its margins in the current context of weak growth.

Desigual