OTB posts stable results in 2016, with premium labels on the up but losses for Diesel

By

Laura Galbiati

Translated by
Nicola Mira

Published
Mar 20, 2017

The 2016 annual results of Italian fashion group OTB, owner of Diesel, Maison Margiela, Marni, Paula Cademartori, Viktor&Rolf, Staff International and Brave Kid, were consistent with those of the previous year. Revenue reached €1.580 billion (its was €1.582 billion in 2015, in like-for-like terms); EBITDA was €68 million, vs €68.5 million in 2015, and consolidated profits amounted to €3.8 million, compared to €3.5 million in 2015.

But 2016 was a troubled year for Diesel, the group's leading label, whose results were impacted by the strategic decision to reposition the brand in distribution terms. Diesel's revenue was €960 million (about 60% of the group's overall revenue) but the fiscal year closed with a loss for the brand.

OTB's premium labels are instead in very good health. Maison Margiela continues on the upward trajectory which began with John Galliano's arrival: all of the label's lines are growing, and revenue was €135 million. Marni has enjoyed double-digit growth, reaching €170 million, with a strong boost provided by the accessories category, handbags in particular. Viktor&Rolf has benefited from the launch of the V&R Mariage bridal line, which enjoyed positive reviews and satisfactory sales, and is expecting to double its revenue in its second season. The label's EBITDA in 2016 grew in double figures. The eponymous premium accessories label by Brazilian designer Paula Cademartori was a new entry in the OTB group in 2016, and has recently opened its first monobrand pop-up store in the heart of Milan.

Staff International, specialised in product development, production and worldwide distribution, continues to grow the business of all its licensed labels organically (Maison Margiela, Marni Uomo, Dsquared, Vivienne Westwood, Just Cavalli and Marc Jacobs Men's), and has topped the €390 million revenue mark. Brave Kid, the group's company specialised in the licensed production and distribution of childrenswear, posted a €40 million revenue in 2016, growing across all the brands in its portfolio (Diesel, Dsquared, John Galliano Kids and Marni) and with the added bonus of a new license agreement for Trussardi Junior.

OTB also enjoyed double-digit growth in e-tailing, and has earmarked a sizeable portion of its 2017 investment budget to drive the group's "digital acceleration."

In geographical terms, Japan and the USA remain the group's prime markets. OTB is holding its ground with all its various brands in Europe, and is devoting more and more attention to Asia, and China in particular.