OTB: Diesel slows down in 2022, but the luxury division grows 103%

OTB: Diesel slows down in 2022, but the luxury division grows 103%

OTB’s result for 2022 is more than positive. The group’s revenue reached 1.7 billion euro, up 14% o yearly basis, with profits at 105 million (+72%) and EBITDA at 314 million (+22%). But what makes the difference is the luxury division. Because while the group’s main brand (Diesel) is still managing the changing creative guidance, Jil SanderMaison Margiela and Marni grew 32% from 2021. A booming performance that becomes even more impressive when compared to pre-pandemic levels: +103% on 2019.

Diesel slows down

The luxury division drove OTB’s results and allows it to set the ambitious target of reaching 2.7 billion euro by 2025 (a value close to the 3-billion mark set by the group’s owner, Renzo Rosso). “Diesel remains the group’s main brand – stated CEO Ubaldo Minelli according to Il Sole 24 Ore –. The brand is undergoing a crucial repositioning phase also thanks to the creative guidance of Glenn Martens. We must be patient, because in 2022 we were impacted by our reorganization and distribution, but the feedbacks from our new creative approach are very positive”. With regards to other divisions, Minelli explains that “Staff International and Brave Kid provided a relevant contribution, with revenue up 32% and 26% respectively on 2021”.

Investments and recipes

OTB invested 81 million euro in 2022 (+70%), especially in its retail operations. “We opened 73 stores – says Minelli -. By the end of 2022 we had 607 stores, and we plan on having 785 by 2025. The numbers seem to show, at least for OTB, that there is now cannibalization between channels: “e-commerce accounts for 18.2% of sales, but it hasn’t negatively impacted physical retail”. The CEO explains to Il Corriere della Sera his recipe for success. “2022 was a complex year, as were 2021 and 2020. But there are three main factors that helped us: our chain proved to be resilient – he concludes -. Our response capabilities were solid, thanks to a cohesive managerial structure, and our consumer still put quality ahead of everything else when it comes to making a choice”.

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