The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
MILAN, Italy — Italian fashion group OTB is planning to invest €200 million ($226 million) over the next three years, potentially in acquiring other brands, after boosting its financial strength in 2018, it said on Monday.
OTB — which stands for Only The Brave — owns a string of street and upmarket European brands including Maison Margiela, Marni, Viktor&Rolf and Paula Cademartori.
The company posted a drop in revenues and margins last year but said its net financial position strengthened by 32 percent to 111 million euros.
Its most famous label, denim-maker Diesel, filed for Chapter 11 protection in the United States earlier this year.
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Diesel's weak performance in Europe and North America last year weighed on OTB's consolidated sales, which fell 3.2 percent at constant exchange rates to 1.4 billion euros. All the other brands posted a growing turnover, the company said.
Its core profit slipped 21 percent to €41.5 million. Net equity stands at €885 million.
OTB chief executive Ubaldo Minelli said in a statement the group had reorganised its business over the past year.
"Our net equity and current financial position will allow us to continue to explore new opportunities," he added.
OTB has recently started negotiations with struggling Italian luxury brand Cavalli, which filed for creditor protection last month and is looking for new investors.
By Claudia Cristoferi; editor: Jan Harvey.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.