MILAN — OTB SpA felt the pressure of currency headwinds last year and a number of significant investments, including the acquisition of Marni, dented its bottom line.
In the 12 months ended Dec. 31, net profit at the Italian fashion group dropped to 3.9 million euros, or $5.1 million, from 67.6 million euros, or $86.5 million, in 2012. Excluding the consolidation of Marni last year, net profit would have totaled 10.6 million euros, or $14 million. In its annual report, the company detailed that Only the Brave purchased a 60 percent stake in the Marni Group, completed on Jan. 31, 2013, for a total of 122.7 million euros, or $162 million.
As reported preliminarily in April, revenues totaled 1.57 billion euros, or $2.07 billion, up 4.3 percent from 1.5 billion euros, or $1.92 billion, in 2012.
Dollar amounts are converted at average exchange for the periods to which they refer.
“The mission of OTB is to build the brands of reference of the future for a new breed of consumers — the unconventional, self-aware, individual ones,” said president Renzo Rosso, in an introduction to the report. “We exist to enable development, challenging the established way of doing things, and putting creativity at the center of all we do.”
OTB controls the Diesel group; Brave Kid Srl, which manages under license the production and distribution of children’s collections for the Diesel, John Galliano, Hello Kitty and Dsquared2 brands; Staff International SpA, which holds licenses for the production and distribution of the Dsquared2, Just Cavalli, Marc Jacobs, Maison Martin Margiela, Viktor & Rolf and Vivienne Westwood brands; the Marni Group; Neuf Sarl, holder of the Maison Martin Margiela trademark, and Viktor & Rolf BV.
When Rosso took control of Marni, he said he was looking at building a fashion conglomerate, admitting to having made a go for Valentino, which was eventually sold to Mayhoola for Investments.
At the group level, the European Union accounted for 34.7 percent of sales and other European countries for 4.9 percent of total revenues; the Americas represented 18.4 percent and Italy 11.7 percent. The rest of the world accounted for 30.3 percent of total sales.
In 2013, earnings before interest, taxes, depreciation and amortization dropped 32.5 percent to 138.1 million euros, or $182.3 million, from 204.6 million euros, or $262 million, in the previous year.
Last year, “Diesel Group initiated a reorganization of the sales function by means of the centralization of certain sales and marketing services at Diesel Group level and other organizational measures were implemented to seek more efficiency and rapidity in the group’s distribution structure in Europe,” said the report. Diesel accounts for about 70 percent of total OTB sales. In addition, the company decided to halt the development and distribution of the 55DSL branded collections with the fall season.
In the year, capital investment totaled 228.2 million euros, or $301.2 million, channeled on intangible fixed assets related to expenditure incurred on the acquisition of commercial activities, leasehold improvements to retail property and IT systems. A new aircraft is also listed as part of the investments.
The group’s net financial position stood at 69.2 million euros, or $91.3 million, compared with 191.7 million euros, or $245.3 million, in 2012, mainly attributable to the acquisition of Marni, related transaction costs, as well as its debt assumed by OTB.
As of Dec. 31, the group counted 805 directly operated stores, as well as 77 stores pertaining to Marni. OTB’s workforce rose to 6,280 employees from 5,400 in 2012.
“I was touched by the fact that she lost her father, really before his time, and it was a real shock. She had two young children, she was married and she was expecting that she would have her own life for a good 25 years,” said Claire Foy about playing a young Queen Elizabeth in Netflix’s The Crown. Styled by @mayteallende 📸@jgreenery #emmys2017 #wwdeyeu
“Truth and lies have become a real interesting theme, more than ever, lately,” Emmy nominee Laura Dern told WWD. "It’s a very interesting time to use our voice." Styled by @cristinaehrlich, 📸 @shayanhathaway #wwdeye #emmys2017
“It transcends the genre that is you think of a sci-fi show — you don’t expect it to be so profound or emotionally riveting,” Evan Rachel Wood told WWD of her Emmy nominated role in Westworld. styled by @samanthamcmillen_stylist 📸 @emmanmontalvan #emmys2017 #wwdeye