The Diesel and Margiela Owner Grew DTC Sales and Solid Performance at Key Brands Despite a General Drop in Sales Growth
OTB Group – whose portfolio includes prominent brands such as Diesel, Maison Margiela, and Jil Sander – experienced a mixed financial performance amidst a challenging year for the luxury sector. The group reported a turnover of €1.7 billion, marking a decrease of 4.9% from the previous year, while EBITDA fell to €275.8 million, a 20.7% drop from 2023. The downturn was mainly attributed to a 15% decline in the wholesale channel, despite a robust expansion in direct-to-consumer sales, which grew by 7.4% thanks to the opening of 61 new stores.
The company’s strategic focus remained on enhancing its direct retail presence, which now encompasses 608 stores globally, along with significant investments in retail expansion and innovation totaling €77 million. Despite these challenges, certain brands within the group, namely Diesel and Maison Margiela, showed resilience with growths of 3.2% and 4.6% respectively at constant exchange rates. OTB’s other brands include Marni and Viktor & Rolf, as well as a stake in Amiri and interests in Staff International and Brave Kid.
OTB’s CEO Ubaldo Minelli highlighted the company’s strategic initiatives, stating, “2024 was a complex year for the entire luxury sector. In this challenging scenario, we embarked on a path of consolidation and expansion for the group, both through investments and by strengthening our management structure, allowing us to look to the future with optimism.” He further emphasized the group’s commitment to its strategic focus on brands, products, and the supply chain as key to maintaining excellence and value for consumers.
The group saw particularly strong performance in its international markets, with Japan and North America reporting growths of 16.3% and 13.3%, respectively. OTB also made strategic moves in the Middle East through a 25-year agreement with Chalhoub Group, aiming to enhance its presence with plans for 15 new stores over the next five years. Additionally, the company entered the Mexican market, setting up a local legal entity and announcing plans to open around 50 stores in the next five years.
Founder and chairman Renzo Rosso reflected on the year’s results with a focus on long-term strategies, “I believe that it is much more important to secure positive business results in the medium-long term rather than immediate financial results, and in fact we have continued to invest in technology and marketing.” His statement underscores the group’s adaptive strategies in a fluctuating market landscape, prioritizing sustainable growth over short-term gains.