Adolfo Domínguez reports a loss of 3.5 million euros despite international sales growth

The textile firm Adolfo Domínguez has incurred losses of 3.5 million euros between March and May, despite the strong performance of its sales, which grew by 13.5%. On an international level, sales surged by 32%.

Based in the San Cibrao das Viñas industrial estate in Ourense, the company recorded a revenue of 21.8 million euros, a 13.5% increase compared to the same period of the previous year, according to data published by the National Securities Market Commission (CNMV).

This growth can be attributed, in part, to the company’s commitment to internationalization, which “continues to drive the growth of the fashion brand,” highlighted the company. Currently, 58% of its points of sale are located outside of Spain, including destinations such as Japan, the Middle East, and Latin America.

The brand has opened eight new stores in Europe, three in Asia and Oceania, and three in the Americas.

In addition to this, the company has focused on optimizing its logistics operations, digitalization, and implementing new platforms for greater interaction with its increasingly younger customer base.

“After achieving profitability, we have laid the foundation for sustainable growth. We are committed to internationalization and innovation as the key drivers to propel us into the future,” stated Antonio Puente, CEO of Adolfo Domínguez.

Noteworthy among the store openings is the fashion brand’s space in the Mitsui Park Kadoma premium outlet in Osaka, Japan, as well as its new store in Dubai Hills, Dubai, United Arab Emirates, resulting from a partnership with the Chalhoub Group. Additionally, the brand has expanded its presence in Ecuador, Panama, and Paraguay.

The company has highlighted its alliance with the Chalhoub Group, the largest luxury distributor in the Middle East, which will enable Adolfo Domínguez to open 16 new stores in the region over the next four years.

International stores now constitute 58% of the fashion group’s retail network, a significant increase of 14 percentage points since 2016.

Adolfo Domínguez currently operates 347 retail locations in 22 countries, with an annual revenue of 114.2 million euros in the last fiscal year.