Adolfo Dominguez reduces 1Q losses by 75 percent

Spanish textile group Adolfo Dominguez has closed its first quarter of current fiscal year reducing losses dramatically. The fashion company has managed to cut its red by 74.8 percent in barely a year. Adolfo Dominguez has closed the first three months of its fiscal year - ended

on 31 May, with a loss of 0.64 million euros. This represents a reduction of almost 75 percent over the same period last year.

The dramatic cut is mainly due to the reduction in depreciation and an improvement in the financial

results. Group sales fell, however, by 3.9 percent to 24.5 million euros.

Adolfo Domínguez explained the lower volume of business with the closing of less profitable stores in its domestic market. In fact, in Spain and Portugal, the company has reduced its commercial network, closing 44 outlets in the last 12 months and reaching a total network of 391 outlets.

In other markets the closures have been more restrained, four in total.

Adolfo Dominguez reduces losses by two thirds during first trimester

One of the worst data for the company in the period was the gross operating profit (EBITDA), with a deficit of 1.6 billion euros (or what is the same, 46 percent below the figure achieved in the first quarter of 2013).

As for many other firms in the fashion industry, the main engine of growth at Adolfo Dominguez during the quarter under review has been the channel online store. The turnover of the online store has meant 1.1 million from the retailer's total sales for the quarter also growing by 23.3 percent over the previous year.

According to data provided by the company, the net financial position improved by 2.2 million euros compared to the first quarter last year.

Despite the dramatic reduction of losses, the stock was trading lower on Monday, shedding 1.68 percent to 5.26 euros per share.