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Italy : Jeans maker Diesel SpA reaches €1bn sales mark in 2004
January 20, 2005 |  |
Italian casualwear and jeanswear company Diesel SpA reported it achieved sales of €1 billion in 2004 and predicted double-digit growth for the current year.
The Molvena-based company revealed that sales increased by 27 percent last year, due to the continued rise in volumes sold as well as the marketing and uptrading of all of the company's brands, which include DSquared and Martin Margiela.
According to Diesel, Dsquared increased sales from €3.5 million to €50 million since its acquisition in 2001, while sales at Martin Margiela, which entered the Diesel group in 2000, rose from €22 to €30 million. Diesel subsidiary Staff International produces both collections.
Thanks to the company's strategy to focus on higher qualities and prices, profits have developed well.
The company informed that profits accounted for 17 percent of sales in 2004, despite the increase of production in Italy, which rose to 55 percent from 40 percent over the past two years. Exports currently account for 85 percent of sales.
Diesel has sharply reduced the number of retail accounts from approximately 10,000 to 5,500 and is increasing its focus on directly owned stores. There are presently 170 Diesel stores worldwide.
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