Financial losses continue at Adolfo Dominguez

Adolfo Dominguez ended the first half of the year with losses of 12.47 million euros, representing a minor improvement on last year when it reported 12.36 million euros in losses. 

The Spanish fashion brand said total sales reached 51.12 million euros, down 0.5% on the first half of the previous year, while same store sales increased 9.7% in the period, according to new accounts filed on Spain’s National Securities Market Commission.

EBITDA loss for the six months to August 2016 totalled 9.8 million euros, showing a 22.8% rise on a year earlier on the back of an improvement in sales trends in the second quarter and reduced operating expenses.

The company’s net cash position improved to 7.2 million euros, from negative 9.2 million euros in the first half of 2015, thanks to the sale of a property on Barcelona’s Paseo de Gracia for 45 million euros.

Adolfo Dominguez has now 558 outlets around the world, 39 less than it did a year before following 24 closures in Europe, 1 in Japan and 15 in the rest of the world. Meanwhile, a new brand is set to open in Mexico.

The store closures brought total sales down by 3.1 million euros, said the company.