OTB Group revenues drop 2.4 percent but EBIT expands to 21.5 mn euros

The OTB Group founded by Renzo Rosso, reported a 2.4 percent decrease in turnover at constant exchange rates to 1.52 billion euro (1.87 billion dollars), reports MF Fashion. Quoting the company statement, the report said, overall increase in margins, together with cost optimization actions, led the company to achieve EBIT of 21.5 million euros (26.3 million dollars) against the 5.1 million euros (6.2 million dollars) in the previous year, an increase of over 16.4 million euros (20.1 million dollars).

The net financial position remained positive at 84 million euros (103 million dollars), up 92 million euros (112.8 million dollars) against 2016. The consolidated net profit, equalling 3 million euros (3.6 million dollars), the company said, was in line with the previous year, despite a tax burden of one-off charges of approximately 7 million euros (8.5 million dollars) owing to regulatory changes in the US and Japan.

Marquee brand Diesel’s downward trend continues

The company having brands such as Diesel, Marni, Maison Margiela, Viktor & Rolf, Paula Cademartori, Staff International and Brave Kid, under its fold, did reveal individual results for its these brands but said that it has been focusing on organizational transformation within a constantly evolving macroeconomic developments. For Diesel, the group initiated steps to improve on product and marketing, which included upgrading of the collections combined with a communication complementing the brand’s DNA. However, the troubled flagship label that saw its artistic director Nicola Formichetti, leave the business after a four-year stint at the house, continued to see a downward trend. OTB has not appointed a successor to Formichetti yet.

According to the MF Fashion report, while Marni saw a strong momentum following a renewed offer in women's and men's ready-to-wear and positive trend in accessories category, the Marni market traveling project received global visibility and improved sales. Maison Margiela also witnessed positive momentum, due to focus on omnichannel growth and is organic expansion of its business, including licenses. Both these brands reported a double digit growth, especially in Asia.

For Viktor & Rolf, the year was marked with exclusive new collaborations that opened up new market segments for the brand and its bridal and evening wear collections received an encouraging response. Paula Cademartori, known for her bags, has taken up a new shoe project and has experimented with her first retail format. During the year under review, Staff international and Brave Kid also showcased positive trading.

Picture: Diesel