Dive Brief:
- The OTB Group reported 2024 net sales of 1.7 billion euros, or about $1.78 billion, a nearly 5% decrease year over year, according to a press release Tuesday.
- The decrease is in contrast to the company’s 2023 financial results, where it saw 9% sales growth compared to the prior year.
- The Diesel and Maison Margiela holding company attributed the 2024 downturn to an industry-wide slowdown in the wholesale channel. The company is focused on expanding its DTC channel through opening 61 new stores and saw the segment’s revenue increase 7.4% at constant exchange rates year over year.
Dive Insight:
OTB’s results reflect the uneven nature of earnings across the luxury sector. Kering, LVMH and Burberry have all reported revenue drops, while Ralph Lauren and Zegna have seen growth.
OTB Group Founder and Chairman Renzo Rossoi said in the release that 2024 was a complex year for the entire luxury sector, and that he was pleased with the group’s results.
“I believe that medium to long-term business results are more important than short-term financial ones,” Rossoi said.
OTB only reported financial figures at constant exchange rates for a few of its brands, including Maison Margiela and Diesel, which grew by 4.6% and 3.2%, respectively.
Maison Margiela plays a vital role within the group, especially its luxury segment, according to the company. The brand is under new creative leadership after it appointed Glenn Martens creative director last month. Martens is also the creative director of sister brand Diesel.
OTB has been working to reposition Diesel with a new strategy launched in 2020, which includes attracting a younger demographic. In Tuesday’s release, the company noted that it organized “travelling rave parties” around the world to further reach that demographic but also said it was attracting “a now solid and heterogenous customer base, which is the cornerstone for the brand’s future development.”
In 2024, Diesel collaborated with the Rihanna-founded lingerie brand Savage X Fenty and signed a 10-year licensing deal with eyewear manufacturer EssilorLuxottica.
OTB also controls Marni, Viktor&Rolf, Brave Kid and Staff International. The latter experienced a slow down in 2024, because it relies on a wholesale distribution model, but the company said Staff International remains a strategic asset for the group because it serves a production and logistics hub for the brands.
