Behind The Huge Rise In Profits Of Diesel Parent Company

OTB SpA remains open to brand mergers and acquisitions. It is looking for medium and small brands that are not inferior to Diesel.

"We are not only interested in brands with high turnover, but also have an impact on our entire group."

OTB SpA co CEO Stefano Rosso said.

Italy fashion group, which owns Diesel, Marni and Viktor&Rolf brands, rose 358% in profits from OTB SpA2014.

In the 2014 fiscal year ended December 31st, OTBSpA achieved a total revenue of 1 billion 560 million euros, which was basically unchanged from 1 billion 570 million euros in 2013.

Net profit of 5 million 500 thousand euros, net profit of 1 million 200 thousand euros in 2013, an increase of 358%.

Why is the number so bad in 2013? Because this year, OTB SpA bought Marni and bought 60% euros for 122 million 700 thousand euros.

The group's net profit in 2013 only left a poor 3 million 900 thousand euros, a sharp decrease of 94.2% compared with the 2012 fiscal year, and the figure for 2012 was 67 million 600 thousand euros.

2013 is the trough of net profit in recent years.

OTB SpA CEO Riccardo Stilli explained to the sharp decline in 2013 that nearly half of the decline came from exchange rate fluctuations and investment in Marni.

In 2014, the group's main brand Diesel income was about 1 billion 14 million euros, accounting for 65% of the group's revenue. In 2013, Diesel's revenue accounted for 70% of the group's total revenue.

It can be seen that the main products of OTBSpA haven't changed much.

After the appointment of Nicola Formichetti as art director in 2013, Diesel strives to enhance its brand image and streamline its image.

In 2014, the performance of the refurbished store network was affected.

Diesel has also made adjustments to close its store on the Fifth Avenue in Manhattan and plans to open a new flagship store on Madison street by the end of this year.

Received the attention of OTB SpA.

In 2014, OTBSpA accounted for nearly 20% of Japan's income and 5% of the rest of Asia. The group hopes that the overall market in Asia can continue to drive growth this year.

The Americas account for 20%, while the rest of the world accounts for the remaining 55%.

Wholesale and retail businesses have contributed considerably to the group.

"The Japanese market has been our focus in developing the market," said Riccardo Stilli, chief executive of OTB SpA.

In 2015, OTBSpA looked forward to increasing sales in the Japanese market.

Looking at other brands of the group, Margiela will open a new store in Milan and San Francisco.

It will also open boutiques in Milan at the end of 5.

Despite the risks associated with the development of diversified and diversified brand portfolios, Stilli said that the goal of OTBSpA is to balance the development of various brands, because the group is still highly dependent on Diesel.

In addition to Diesel, Marni and Viktor&Rolf, OTBSpA also owns NeufSarl, Maison Margiela trademark, clothing manufacturer Staff International SpA (Just, Maison, and Mens, and mens wear) and children's wear agents.