Financial Turnaround and Strategic Repositioning

After a period of strategic investment and restructuring initiated in 2019, Desigual has announced a return to profitability. The company’s focus on repositioning its brand and appealing to a younger demographic appears to be paying off. This positive result follows a year of significant investment in both brick-and-mortar stores and enhanced communication strategies, which led to a loss in 2023. Desigual had previously returned to profitability in 2021 and maintained a positive result of just over €3 million in 2022.

Sales Performance and Global Expansion

Desigual’s sales reached €332 million at the close of 2024. The company highlighted the success of its organic sales growth, particularly in international markets. The United States saw a notable increase of 7%, while Japan experienced a growth of 9%. Furthermore, sales in Central europe, the Middle East, and Africa collectively rose by 11%, demonstrating the brand’s expanding global reach. Desigual currently operates in 95 markets worldwide.

Organic sale has evolved favorably in international markets, where the United States stands out significantly with a growth of 7%, and Japan, with 9%

Desigual Company Statement, 2025

This international growth is crucial in today’s fashion landscape, where brands are increasingly looking to diversify their markets to mitigate risks and capitalize on emerging consumer trends. For exmaple,many European brands are currently focusing on the Asian market,which is projected to account for over 40% of global fashion sales by 2030.

E-commerce Dominance and Omni-Channel Strategy

The online channel continues to be a vital component of Desigual’s business strategy,accounting for 35% of total sales in 2024. This represents a substantial increase from 19% in 2019, underscoring the brand’s prosperous adaptation to the evolving retail landscape. Desigual has also expanded its presence on international e-commerce platforms through partnerships with major retailers like Macy’s and Nordstrom, further solidifying its online footprint.

Retail Footprint and investment in Brand Experience

As of the end of 2024, Desigual operates 282 monobrand stores worldwide, alongside its presence in multi-brand channels and online platforms.The company has strategically reorganized its store network, reducing its commercial area by 28% over the past two years. This has been accompanied by a significant investment of €98 million in renovating and modernizing its points of sale over the last five years, enhancing the overall customer experience.

With 35% of online sales, the company has a network of 332 monomarca establishments

Future outlook and Investment in Communication

While Desigual has not provided specific growth forecasts for 2025, the company aims to strengthen its growth trajectory in the coming years. A key element of this strategy is a planned investment of 10% of turnover in communication and marketing for the current year, representing the largest investment in this area in the company’s history. This commitment to brand building and customer engagement signals Desigual’s confidence in its future prospects.