Desigual reported a profitable year, supported by a revitalized network of stores and smarter internal logistics. The Catalan fashion house, under the leadership of Thomas Meyer, curtailed prior losses and posted a net profit of three million euros with an EBITDA of thirty million euros. The 2021 balance sheet put a pause to ongoing criticisms, highlighting a company that embraces disruption as part of its DNA while adapting its collections to new audiences without compromising its distinctive style. [Cited industry analysis, corporate disclosures]
With more than 2,700 employees, Desigual operates in 109 countries through ten sales channels and a network of 408 stores. The year closed with a turnover of 371 million euros, marking a 3.4 percent rise from the previous year. In the first quarter of 2022, sales climbed by 15 percent year over year, signaling a potential turning point amid a context of market uncertainty. Digital commerce surged by 85 percent compared with the first quarter of 2019, illustrating the ongoing shift toward online shopping as a core component of the business model. The company aims for digital channels to account for sixty percent of sales by 2023, up from fifty five percent, reflecting a strategic emphasis on e commerce outside Europe as well. [Industry briefing]
In 2021 the physical footprint was streamlined by removing twenty stores after opening eighteen and closing thirty eight, while the digital channel accounted for thirty one point two percent of total business and generated around 116 million euros. Each region advanced at its own pace in this transition, yet online commerce emerged as the primary driver of change across the fashion sector. The rise of online sales also pushed Desigual to retrofit its store network, a process that began in 2019 and, according to the company, is near completion. Investments in store modernization and logistics rose by eighty three percent year over year, reaching thirty three million euros compared with eighteen million in 2020. The modernization effort included adopting new digital business controls and expanding the logistics backbone. In total, sixty three stores received renovations, with a concentration in Europe. The firm targets ninety percent of its store network to be fully renewed by year end, featuring flagship sites in Spain such as Plaza de Catalunya in Barcelona and Calle Preciados in Madrid, as well as showcases in Milan, Bologna, and Osaka. [Corporate update]
Desigual places clear emphasis on logistics and technological innovation as levers for better product usability. The Apolo project, designed to optimize inventory and forecast demand, helped make logistics profitable and reduced the average number of garments per store by about one thousand three hundred annually. The company often involves its workforce in strategic changes, a practice reflected in the adoption of Open Desigual as a practical success factor within its transformation. Collaboration with external partners, including startup accelerator Awesome Lab, is expected to yield a competitive edge. [Operational note]
During periods of supply strain, inventory control proved crucial to preserving profitability in the previous year. Inventory levels were managed more tightly, leading to a modest decline in available stock yet a rise in product availability. The chief executive officer emphasizes a proactive approach to meeting demand across markets by managing the product mix in real time and anticipating shifts in conditions. Desigual pursues a unified stock model so customers can purchase any product regardless of country or channel, reinforcing that product availability directly shapes the shopping experience and customer satisfaction. [Executive remark]
The company gained attention for introducing a four-day workweek for about five hundred employees at its head offices, aiming to enhance flexibility and work-life balance. The plan, which scheduled three in-office days and one remote day, was approved by more than eighty six percent of votes. Six months into implementation, surveys indicated high employee happiness and improved harmony between personal and professional life, with many not wishing to revert to a five-day work arrangement. [Internal policy report]