Adolfo Domínguez: Operational turnaround amid financial pressure

Between March and November 2025, Spanish company Adolfo Domínguez has strengthened its operating performance despite a weak fashion market in Spain and a leadership shake-up mid-period.

The company appointed Íñigo de Llano as CEO in May 2025, but he exited in September, after only about five months, reportedly due to a misalignment between his management approach and the strategy set by the board. By the end of November, the group was already operating without him.

Against that backdrop, revenues still increased +2.5 percent to 93.3 million euros, supported by international diversification and like-for-like sales growth that outperformed the broader Spanish market, led by “Rest of the World” segment, Japan and Mexico.

Gross margin climbed to 56.6 million euro, the highest level since 2013, driven by a more profitable product mix, lower promotional intensity and logistics efficiencies. Tight cost control lifted adjusted EBITDA by 28 percent to 12.7 million euros — a record since 2011 — while EBIT returned to positive territory for the first time in 16 years.

Net losses narrowed to 1.3 million euros, reflecting sustained operational improvement, although depreciation and higher financial costs continue to weigh on the bottom line. To support growth, the group increased short-term financing, pushing net financial debt to 15.4 million euros, while maintaining a still-manageable leverage profile.

International markets, online sales (+8.5 percent) and franchises (+11 percent) were the main growth engines, while the retail network was selectively optimized to prioritize profitability over scale.