Desigual, the Spanish fashion brand, closed 2022 registering an over €379 million turnover while earning a 15% growth when compared with 2021.
The company currently counts more than 2,500 employees and is present in 104 countries through 10 sales channels, 377 mono-brand stores and six product categories–Woman, Man, Kids, Accessories, Shoes and Sport.
Increasing Desigual's environmental commitment
As part of the company's key strategies of 2022 the company has also accelerated in various areas, one of whose is sustainability.
Under The Love The World philosophy, the company has continued to develop its sustainability strategy. Two of its main pillars part of this umbrella are product-related and include the increasing of the sustainable references of the collections every year–and the renewal of its climate commitment goals, with a further reduction of Scope 1, 2 and 3 emissions in order to achieve carbon neutrality by 2050.
In terms of product, in 2020, Desigual set the goal to offer 50% of its products characterised by sustainable qualities by 2023. For its s/s 2022 collection, that percentage was already achieved by 55% (growing from a 32% reached in 2021), while its new goal for 2023 is to reach 70%.
As part of these goals, by 2025, Desigual aims to use 100% cotton coming from sustainable sources, it has removed entirely single-use plastics from its packaging, and only uses 100% recycled plastic and only when necessary.
In 2022, the company has also launched its first entirely circular collection–The Circular Denim Project–made with reused denim. The capsule is produced according to circularity and proximity criteria for every step of the process–from fibers' disassembling and spinning, through design and manufacturing, to recycling.
Moreover, for launching The Circular Denim Project, Desigual has collaborated with a social inclusion entity and two companies with extensive experience and benchmarks in the national textile industry, which have allowed the entire process to be carried out in Spain.
In terms of emissions, Desigual has reviewed and renewed its commitments with the reduction of gas emissions through Science Based Targets Initiative. The company is committed to reduce by 65% its reach 1, 2 and 3 emissions by 2026.
The company also aspires to become carbon-neutral by 2050, achieving this way the goals set by the Fashion Pact and aligning with the European Green Deal.
The company has also started a series of partnerships with, among others, Sustainable Apparel Coalition, Better Cotton Initiative, Amfori, Textile Exchange, Sedex, Fashion Pact and Zero Discharge of Hazardous Chemicals (ZDHC).
Among the factors behind its economic growth, instead, there has been a notable recovery in activity in the company's own store network over the past year, with an increase of 10%. Sales through the digital channel stabilized after two years of continuous growth and now represent 27% of the company's total turnover.
The performance in international markets has grown 20% between Americas and Asia, and in Europe, Spain and Portugal led the way, recording a recovery in sales and a 10% increase in turnover, ahead of countries such as France and Italy.
As part of its growth strategy in Asian markets, the company has strengthened its presence in China through a joint venture with the Septwolves Industrial Co., Ltd. group. The agreement, announced in September 2022, aims to reach a turnover of €40 million in five years through digital channels, and also plans the opening of flagship stores in Shanghai and Beijing.
As part this year's growth, Desigual has also introduced the four-day week. The company put the decision to a vote among the more than 500 employees working at the headquarters in October 2021 and 86% of them voted in favor.
Today, employees work from Monday to Thursday, with three face-to-face days and one telework day. According to data from an internal survey conducted at the beginning of the year, 90% of employees believe that the measure has increased their happiness and 80% believe that it has improved their work-life balance.
Desigual maintained a high pace of investment during 2022, closing the year with a total figure of €28 million.
"During the 2021-2022 period we accelerated the changes we had been working on, once we had digested the impact of COVID and the management of the priorities demanded by the pandemic. Already in 2021 we doubled the investment to a total of €33 million, and in 2022 we have once again made a notable investment effort for renewing our store network, as well as our logistics and IT processes," explained Alberto Ojinaga, CEO, Desigual.
The company has also renewed its global store network, with a total of 34 openings and relocations between own stores and franchises, and operated the restyling of 16 stores, most of them concentrated in European markets and Japan. Currently, 74% of the points of sale already have the new image.