Adolfo Dominguez losses narrow by 43.5% in first half

Adolfo Dominguez reported losses of €2.8 million ($3.2m) in the the first half of the year ended in August, representing a 43.5% improvement compared with losses of €4.9 a year earlier, it announced on Friday.

The result includes one-off costs of €1.1 million ($1.2m) incurred during the six-month period, which were related to a brand integration process. The company attributed the improvement to the brand’s repositioning (less stores, less total sales but higher margins and higher like-for-like sales).

Adolfo Dominguez increased like-for-like sales by 5.4%, excluding new stores and store closures, while total sales amounted to €52 million ($58.9m), down 4.9%.

The company’s EBITDA loss reached €1.5 million ($1.7m), and although it was a loss, it represented the best result for the company in eight years - up 51.9%. Since changing its management team during the 2016/17 financial year, the brand’s EBITDA has improved by €8.3 million (up 85%).