Dive Brief:
- The OTB Group reported 1.8 billion euros in net sales for its 2023 fiscal year, or about $1.95 billion at current exchange rates, representing a 9.1% year-over-year increase, according to a company earnings report last week.
- OTB, which only reported constant exchange rates for its brands, saw growth across its major fashion houses including Jil Sander and Marni, which grew 17.3% and 8.6%, respectively. The company said the Asia market, including expansion in Japan, was its key growth driver companywide. The Japan market represents 23% of OTB’s total business, and the country reported 19.4% growth year-over-year in 2023, per the company.
- The year also included several executive changes for brands within OTB, including new CEOs for Maison Margiela, Diesel North America and Jil Sander.
Dive Insight:
The OTB Group’s luxury brands saw growth while some of its peers in the luxury space are experiencing mixed financial results after softening consumer demand during the holiday season.
Maison Margiela saw a 23% uptick year over year, which the company attributed to improvement in China and Korea and its increasing appeal among young consumers in Asia. The brand opened 24 new stores worldwide, per the release.
The company also noted that its premium denim brand Diesel gained ground with a younger consumer. Gen Z represented 35% of the brand's customer base, which the company said created a foundation for its future global development. The women’s collection now represents 50% of the business. As a whole, the brand saw 13.1% growth.
Jil Sander and Marni both signed cosmetics license agreements with Coty. At the beginning of this year, Marni signed a 20-year licensing agreement with the company for the development, production and global distribution of beauty and fragrance products. Jil Sander renewed its license agreement for a 10-year period.
The company didn’t disclose figures for some of its other holdings, including Viktor&Rolf, Staff International and Brave Kid. During 2023, Staff International acquired a majority interest in leather goods atelier Frassineti, part of its strategy to purchase equity in production partners.
Companywide, OTB’s direct channels saw 33.8% growth, driven by increased sales in existing stores and 76 new openings.
"I am proud of what we achieved in 2023; it was a challenging year, but our brands continued to grow in all markets, not just key locations like the USA, China and Japan, a historic market for us, but also in new areas like South Korea, which is performing very well, and other Asian markets,” OTB Group Founder and Chairman Renzo Rosso said in the release. “Young consumers appreciate the fact that our brands often take an opposite approach to the market, focusing largely on the look and quality of their products and continuing their mission to make fashion a dream. A mission we would not achieve without the excellence of our great supply chain, where we have established collaborations and partnerships, and of Made in Italy.”
