OTB, parent of Diesel, Jil Sander, Maison Margiela, has reported lower sales for the last fiscal year as a decline in wholesale more than offset growth in the direct-to-consumer (DTC) channel.

The group’s net sales for the year ended December 31 were €1.7 billion (US$1.77 billion), down 4.9 per cent on a reported basis and 3.1 per cent in constant currency compared to 2023.

DTC surged 7.4 per cent (at constant exchange rates) thanks to strong performance in existing stores and the addition of 61 new locations. Meanwhile, the wholesale channel experienced a slump due to the general downturn.

Diesel and Maison Margiela stood out among the group’s brand portfolio with sales uplifts of 3.2 per cent and 4.6 per cent, respectively.

By region, the company recorded sales growth in its “highly strategic markets”, with Japan growing 16.3 per cent and North America rising 13.3 per cent. These offset the slowdown in the Chinese market. 

“In a particularly challenging and continuously evolving market environment, 2024 represented a year of consolidation and growth for OTB, following two years of strong performance in 2022 and 2023,” the group said in a statement.

“Thanks to a long-term strategy focused on investments targeting direct channels, the group further strengthened its retail business both in markets where it was already present and by entering new geographical areas,” it added.