Diesel owner posts profits, sales grow

Diesel owner swings back to the black. Italian fashion group OTB, which also owns Maison Margiela and Marni, among others, has posted profits of 2 million euros in the 12 months ended December 31, compared with a net loss from recurring activities of 26 million euros in 2018.

Sales of the company grew 6,4%, to 1.53 billion euros, fuelled by growth in all markets and channels. The group’s brand opened more than 70 stores during the year, which caused retail sales to increase 9%.

Diesel represents 60% of OTB total revenue and posted a growth of 2.6% in 2019, after opening 45 stores. The direct e-commerce channel was the other driver of the brand’s growth, with an increase of 24.3%.

The group is keeping its 2020 revenue target despite the coronavirus epidemic, that has already forced other fashion companies to revise its goals for the year, according to Reuters. OTB is targeting a 12-13% annual average revenue growth, at constant exchange rates, between 2019 and 2021.