Desigual reports drop in sales as it continues to downsize

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Desigual has reported a drop in revenues and sales in 2016, with the trend continuing for the first two months of this year.

The Spanish retailer, which operates two stores in London and trades online, recorded revenue of €860.5 million (£746.7 million) in 2016, down 7.8 per cent compared to 2015.

Sales also declined 11.1 per cent in the fourth quarter and EBITDA stood at €166.4 million (£144.4 million), a 16.8 per cent decline compared to the last year.

The Barcelona-based retailer said the figures suffered because of performances in European countries, highlighting how revenues outside the continent went up by one per cent.

Desigual also said these figures reflected how they have been making its retail store network more efficient, which included the closing of some stores in 2016.

The news comes after the company implemented a two-year cost savings plan and finalised its new strategic plan after hiring Alberto Ojinaga as chief corporate officer.

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