OTB reports slight turnover decrease despite direct channel growth

Italian fashion group OTB reported a turnover of 1.8 billion euros, down 4.4 percent for the 2024 financial year, with net sales reaching 1.7 billion euros, down 3.1 percent. The company achieved an EBITDA of 276 million euros, representing a 16.3 percent return on net sales and EBIT was 44 million euros.

Direct channels experienced a 7.4 percent growth compared to 2023, driven by increased sales in existing stores and the addition of 61 new locations, expanding the network to a total of 608 direct stores by the end of 2024.

"I am pleased with the results achieved in 2024, even though it was a challenging year for the entire luxury sector. We have continued with our strategy of expanding direct channels, where we have performed positively. However, we experienced declines in the wholesale channel, which have negatively impacted the entire industry,” said OTB Group founder and chairman Renzo Rosso.

Within the company’s brand portfolio, Maison Margiela saw positive performance with 4.6 percent growth, while Diesel's revenues increased by 3.2 percent. Geographically, Japan and North America demonstrated strong growth, at 16.3 percent and 13.3 percent, respectively. Notably, Japan remains OTB's key market, representing 26 percent of total business.

Key highlights of the year included OTB's joint-venture agreement with Chalhoub Group to bolster the direct presence of its luxury brands in the Middle East, and its entry into the Mexican market through a local legal entity, with plans to open approximately 50 new stores over the next five years, including 15 in 2025.

Through Staff International, OTB also acquired a majority stake in Calzaturificio Stephen, a long-standing supplier and manufacturer of high-end footwear for the Group. This follows the 2023 acquisition of a controlling interest in Frassineti, a Florentine leather goods company.

"2024 was a complex year for the entire luxury sector. In this challenging scenario, we embarked on a path of consolidation and expansion for the Group, both through investments and by strengthening our management structure, allowing us to look to the future with optimism,” added OTB Group CEO Ubaldo Minelli.