What's Happening?
OTB Group, the parent company of brands such as Maison Margiela, Diesel, and Jil Sander, has reported a 5% decline in net sales for the year ending December 31, 2025, amounting to €1.6 billion. The decrease is attributed to a significant drop in the wholesale channel and a slowdown in key markets like China and Europe. Despite these challenges, the company has seen growth in its direct-to-consumer channels, which now account for 60% of its turnover. Maison Margiela, under the creative direction of Glenn Martens, reported an 8.4% sales increase, marking the highest growth among OTB brands. The company also noted that Diesel has reached its highest profitability in a decade. OTB has been expanding its presence in the Middle East and Japan, with
new store openings in Mexico and a joint venture in Qatar and Kuwait planned for 2026.
Why It's Important?
The decline in OTB Group's sales highlights the broader challenges facing the global fashion industry, particularly in wholesale markets and regions like China and Europe. The company's strategic shift towards direct-to-consumer sales reflects a growing trend in the industry to mitigate risks associated with traditional retail channels. The resilience of brands like Maison Margiela and Diesel suggests that strong creative leadership and brand positioning can drive growth even in challenging economic conditions. OTB's expansion into the Middle East and stable performance in Japan indicate potential growth areas that could offset declines in other regions. This development underscores the importance of market diversification and innovation in sustaining business growth in the fashion sector.
What's Next?
OTB Group plans to continue its expansion efforts, particularly in the Middle East, with a joint venture in Qatar and Kuwait set for 2026. The company aims to leverage its creative strengths to navigate the challenging economic landscape and achieve its ambitious growth objectives. As the fashion industry continues to face economic and geopolitical uncertainties, OTB's focus on creativity and direct-to-consumer channels may serve as a model for other companies seeking to adapt to changing market dynamics. The group's future performance will likely depend on its ability to innovate and capitalize on emerging market opportunities.
