Desigual Bounces Back: From a €61 Million Loss to a Positive €313,331 by 2023

Desigual turns its results around and leaves the red behind. The Spanish company, which had already announced that it had turned a profit, closed the last full year with a net result of €313,331, a far cry from the losses of more than €61 million it posted a year earlier. The company, in the midst of a transformation phase, managed to redirect its profitability despite the fact that its sales continued to adjust, only to recover in 2025.

After recovering from the blow of Covid-19, Desigual entered into losses in 2023, going from a net result of €3.04 million positive in 2023 to the red, as a result of high investment in both the restructuring of the store network and in communication, the latter being one of the pillars of its relaunch plan.

In 2019, the company controlled by Thomas Meyer launched a restructuring plan that has gone through targeting a new customer (losing sales by leaving the old one behind), positioning a new image and reorganizing the distribution network, mainly.

Desigual closed 2024 correcting its operating result, which in 2023 stood at 58 million negative

In 2024, the first fruits of this reorganization began to be passed on to the bottom line. In addition to the improvement in net income, the group’s operating income has been significantly corrected: from negative 58.75 million euros in 2023 to only negative 424,191 euros in 2024.

The company has adjusted both its procurement expenses (in line with the adjustment in sales), personnel expenses (which have fallen from €79.63 million to €69.99 million), and other operating expenses, which have fallen from €177.16 million to €138.82 million.

At the end of the 2024 financial year, Desigual’s turnover stood at €332.07 million, a 5.81% decrease compared to the €352.56 million in 2023. Despite the adjustment, the company claims that 2024 marked the third consecutive year of organic growth.

Desigual consolidates its business in the company Abasic, whose consolidated accounts include the activity of nearly twenty subsidiaries, located in countries such as Spain, the United Kingdom, France, Portugal, the Netherlands, Belgium, Japan, Singapore, Canada and Poland. At the end of 2024, Abasic accumulated inventories valued at 88 million euros, representing 28% of total assets.

With equity of €185.62 million (compared to €181.71 million in 2023), Abasic ended 2024 with liabilities of €112.31 million, down 8.69% compared to 2023. The bulk of the company’s liabilities corresponds to commitments to trade creditors, with debt with credit institutions representing only 5.06% of the total.