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It’s been a good year for the OTB Group. Full-year revenue at the Italian fashion group hit €1.9 billion, up 10.2 per cent compared to 2022, the company announced on Friday.
Net sales surged 12 per cent to €1.8 billion in the 12 months ending 31 December 2023, driven by growth in its DTC sales channels, a successful turnaround at Diesel and a strong performance across the group’s luxury brands, including Maison Margiela and Jil Sander. EBITDA reached €348 million.
“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 a statement.
Asia-Pacific was a key target for the OTB Group in 2023, accounting for 40 per cent of total revenue. Last year, the group identified “areas with high potential” and subsequently opened 30 new stores in APAC, including China and Japan, which accounts for approximately 23 per cent of the business; and South Korea, one of OTB’s top-performing new markets. The group returned to growth in North America, while performance in Europe remained stable.
By brand, Maison Margiela remained a frontier, up 23 per cent compared to the previous year. The luxury house has a burgeoning consumer base in Asia, particularly China and South Korea, where the brand says sales increased 72.4 per cent compared to 2022. Thanks to its standout 2024 haute couture show in Paris, designed by creative director John Galliano, Maison Margiela is starting the year on a strong foot, too. Jil Sander followed closely behind, with sales up 17.3 per cent year-on-year; sales at Marni grew 8 per cent. Following the success of its fashion show in Paris last September, Marni will return as part of the official AW24 calendar of Milan Fashion Week, according to the company.
The Diesel turnaround is proving successful as well. Sales at the brand, led by creative director Glenn Martens, were up 13 per cent compared to the year prior. Key growth drivers were Diesel’s 1dr bag and its women’s collection, which now accounts for 50 per cent of the business. It’s also benefiting from a growing interest among young consumers, with Gen Z representing 35 per cent of its customer base, the company said.
“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’,” Rosso said in a statement.
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