Wednesday, September 16, 2020
Adolfo Domínguez’s sales fell 67% between March and May despite growing 52% ‘online’
- Up to 92% of stores were closed during the quarter.
- The firm launches a new website to strengthen its ‘e-commerce’ during the pandemic.
Sales of the Adolfo Domínguez group fell by 67.3% between March and May 2020 due to the Covid-19 crisis, which forced up to 92% of its points of sale to be temporarily closed in the first quarter of 2020 /twenty-one. The company’s online store, the main source of income during the global lockdown, grew by 52.3%. The firm continues to reinforce its investments in innovation and technology, with the renewal of its website, which now includes artificial intelligence and an online personal shopper to adapt its offer to customer purchases.
The first quarter of the 2020/21 fiscal year (March-May 2020) reflects the greatest impact of the pandemic and the restrictions established on mobility and physical commerce. During this period, the company has adopted extraordinary measures, including the reduction of more than 34% of its operating expenses, the temporary regulation of employment, as well as obtaining extraordinary financing. The coronavirus crisis causes a negative operating result (ebitda) of 4.6 million euros, compared to +1.1 million generated in the same quarter of the previous year.
Adolfo Domínguez’s sales are down in all the markets in which the signature fashion firm operates. In Spain, the Adolfo Domínguez group loses 35% of its accumulated sales between January and May, compared to the average drop of 45% in the sector as a whole, according to Acotex data.
“Today we already have 88% of our commercial network reactivated. The reopening allows to recover sales, but the level of consumption is far from normal. In August, for example, sales were 25% lower than usual. The evolution of consumption will set the pace in this anomalous year, in which innovation, digitization and having an optimized and flexible commercial network will be the levers that propel us forward ”, explains Antonio Puente, CEO of Adolfo Domínguez.
Adolfo Domínguez launches a new website this month, which allows you to personalize your customers’ online experience based on their purchases. The new platform, specially designed for access from mobile devices, has already been tested in beta format since last July and will be available at the end of the month for its customers in Europe, Mexico and the United States. E-commerce continues to be one of the firm’s growth levers, with a cumulative increase of 158% in sales in the last three years.
Adolfo Domínguez now has a new online sales platform (Source: Adolfo Domínguez website)
The new online sales platform is accompanied by a service, until now a pioneer in a fashion brand in Europe, consisting of the selection and shipment of garments to customers’ homes based on an artificial intelligence project assisted by the company’s stylists. . This is the ADN project that allows you to try at home and return or purchase the garments and accessories selected by the platform and the personal shopper of each client.
Adolfo Domínguez has an annual turnover of 115 million euros (2019/20 financial year) and employs 1,209 professionals. The firm markets its garments in 381 points of sale in 20 countries.