PARIS — Spanish retailer Desigual has shuttered its Fifth Avenue flagship in Manhattan as the company continues to focus its energy on “strategic transformation” in key markets.
The Barcelona-based brand said the store had been performing well, but it nonetheless decided not to remain at the location following the expiration of the lease.
Desigual maintains stores in SoHo and Herald Square in New York, as well as eight other stores in the U.S.
While the company said it is not planning to close other U.S. stores, efforts to expand in the American market have been put on hold.
“The U.S. market continues to represent a strategic and opportunity market for Desigual given the potential growth offered by the country. The priority now is to improve profitability,” a spokesperson for the company told WWD. “We are focusing on transformation of the company, not expansion.”
In 2015, Desigual closed 27 locations, opened 48 and converted seven franchises into company-owned units as part of its “strategic transformation” and store rationalization plan, its shareholder Eurazeo SA told WWD in November.
North America represents only 4 percent of the revenues of the company, whose sales remain focused on Europe.
Earlier in November, Desigual had reported a 5.8 percent drop in sales in the third quarter, citing declining tourism in France as a significant cause. Other key markets for the group include its native Spain, where it said sales were on track, and Germany and Italy, which had also registered falling revenues.
The Fifth Avenue store had 13 employees, two of which the company said it has transferred to other locations.