MILAN — Several changes have been taking place within the OTB Group over the last year and in early 2025, and chief executive officer Ubaldo Minelli believes they will all lead to further growth.
“In a year, 2024, that was complex for the entire luxury industry, we continued to invest in our retail network, in strengthening our managerial structure and consolidating and expanding the group,” said Minelli in an interview. “Key markets such as Japan and the U.S. performed well and we have developed our operations in the Middle East and in Mexico, which allow us to pursue the ambitious objectives we have set for the group.”
This includes the expected initial public offering, which “is on the agenda and remains on the agenda, but we are in no rush. We are looking at 2026 if the economy will be more favorable and the numbers more interesting,” said Minelli.
Last year, while Diesel, Maison Margiela and the direct-to-consumer channel all reported growth, the slowdown in China and a 15 percent decrease in the group’s wholesale channel impacted OTB’s turnover, which decreased 5.2 percent to 1.8 billion euros, compared with 1.9 billion euros in 2023. At constant exchange rates, turnover was down 4.4 percent.
The direct-to-consumer channel was up 7.4 percent at constant exchange rates, also lifted by the opening of 61 new stores. At the end of 2024, the group had 608 directly operated stores globally.
OTB also controls the Jil Sander, Marni and Viktor & Rolf brands, and has a stake in Amiri. It also comprises the Staff International and Brave Kid manufacturing arms. While the group does not break out sales by brand, Minelli said that, at constant exchange rates, Diesel revenues last year were up 3.2 percent and Maison Margiela sales climbed 4.6 percent.
Group net sales amounted to 1.7 billion euros, down 4.9 percent compared with 1.8 billion euros. At constant exchange rates, sales were down 3.1 percent.
Margins were dented by the investments, which last year totaled 77 million euros, channeled in particular into the expansion of the retail network for all of the group’s brands and on innovation. Earnings before interest, taxes, depreciation and amortization amounted to 275.8 million euros, down 20.7 percent compared with 347.6 million euros in 2023, or 16.3 percent on sales.
Operating profit amounted to 44 million euros compared with 140 million euros in 2023.
Renzo Rosso, founder and chairman of OTB, touted the performance in a challenging luxury industry, highlighting the expansion and the strong performance of the group’s retail network, “which proved that our products and our creativity work across the board. I believe that it is much more important to secure positive business results in the medium-long term rather than immediate financial results, and in fact we have continued to invest in technology and marketing.”
Japan and North America reported growth at constant exchange rates of 16.3 percent and 13.3 percent, respectively. Japan was confirmed as a key market for the group, representing 26 percent of total sales.
“Both markets gave us great satisfaction, and offset the slowdown in China,” said Minelli.
Maison Margiela Couture spring 2024
Giovanni Giannoni/WWD
Unconcerned About Tariffs
The executive was not particularly concerned about the tariffs promised by President Donald Trump, nor by the changing department store landscape in the U.S. “We observe both, but can’t do much about either. We are more used to focusing on the leverages we can control. I am more worried about the geopolitical situation and the conflicts around the world,” he said, hoping for a resolution in 2025. “The other main concern is China. We made the brave choice to continue to invest there since early 2024 and will continue in 2025, betting on its recovery.”
Minelli touted the strategy of investing in the group’s retail network since 2021, given the challenges of the wholesale channel. “In 2021, direct-to-consumer contributed to only less than 30 percent of total sales, at the end of 2023 it represented more than 50 percent, and in 2024, 57 percent of sales. However, this is not an arrival point — we are aiming at retail to account for 75 percent of sales, and the sooner we get there the better.”
Minelli expressed hope that China, after “a stall” in 2024, would recover in the second half of 2025.
“In 2023 we saw sales in China grow fivefold since 2019,” said Minelli. Last year, sales in China fell 5.7 percent but gradually improved and the group continued to open stores in that market.
“Last year, we opened 61 stores in the world, of which 28 were in China,” said Minelli.
He said that, in the first quarter of 2024, sales in China were down 8 percent on the first quarter of 2023; in the second and third quarters, they were down 4.8 percent, and in the last quarter they were down 2.2 percent. “The year 2025 started with a similar trend as the last quarter and we are more confident on the second half of the year.”
OTB has been investing in markets with high potential, such as the Middle East, inking in June a 25-year joint venture agreement with Chalhoub Group to strengthen its direct presence in the region, which will lead to the opening of 15 new stores over the next five years, of which two will bow in 2025. In the region there are already a Maison Margiela store in Dubai and a Marni store in Riyadh. Minelli said Chaloub will distribute all OTB brands except Diesel, which is distributed by Beside Group in the Middle East.
In 2024, OTB set up a local legal entity in Mexico, where it expects to open around 50 new stores over the next five years, of which 15 will open in 2025 for Diesel, Maison Margiela, and Marni.
Last year, OTB also continued to strengthen its pipeline. Staff International acquired the majority of Calzaturificio Stephen, the group’s storied high-end footwear supplier, in line with its goal to acquire know-how in strategic product categories. This followed the acquisition of a majority stake in Florentine leather goods producer Frassineti.
Sales in Europe grew in the group’s own network of stores, but the region was impacted by the wholesale channel, partly due to its own streamlining, in particular for Diesel, and partly due to the problems incurred by online platforms such as Farfetch, said Minelli.
Jil Sander, spring 2025
Giovanni Giannoni/WWD
Diesel in 2024 opened 16 stores across Asia with flagships in Seoul, Hong Kong, Singapore and Tokyo Shibuya, and points of sale in high potential locations such as Bangalore, India.
Minelli also highlighted Diesel’s 10-year license with EssilorLuxottica, with the first eyewear collection presented with the spring 2024 show in Milan.
Following the exit of John Galliano, Glenn Martens was named creative director of Maison Margiela at the end of last month. Martens will continue to design Diesel and, asked to comment on balancing the two brands, Minelli said that “Galliano did an extraordinary job for a decade, but we thought that cycle could close and that we could open a new one with a creative director we know very well, now in his fifth year at Diesel. Glenn no longer has the commitment with Y/Project, so we believe that both are compatible and can be juggled. He is extraordinarily talented.”
In February, former Fendi chairman and CEO Serge Brunschwig was named CEO of Jil Sander, succeeding Luca Lo Curzio, who exited Jil Sander in November. Brunschwig was also appointed chief strategy officer of OTB.
“Having Serge onboard is a great coup, he is solid, experienced and will do very well,” said Minelli. “He has a deep knowledge of retail and an international vision. His priority is Jil Sander, but he will contribute to the group’s strategic development. The value of experience in moments such as these makes the difference.”
Jil Sander expanded its retail footprint last year, opening a flagship in Tokyo’s Ginza, the biggest at the global level for the brand covering more than 10,800 square feet. In December, Jil Sander launched its first fine jewelry collection, and in January 2025, two years since the renewal of its license with Coty, Jil Sander presented its first premium fragrances. Last year, Marni also inked a license with Coty for 20 years for the development, production and distribution of high-end beauty and fragrances.
Minelli declined to comment on the speculation that Jil Sander creative directors Luke and Lucie Meier will exit the brand after the fall 2025 fashion show in Milan on Feb. 26. WWD reported that sources say Simone Bellotti, Bally’s creative director, is said to be exiting the Swiss brand and to be on his way to Jil Sander. “We are focused on the fall show,” said Minelli.
After the exit of Eraldo Poletto as CEO of Diesel in February 2023, Rosso has held that role ad interim, which Minelli feels greatly contributed to the growth of the brand. While admitting a search will soon begin to find a successor, Minelli said “there is no rush.”
Earlier this month, in a sign of renewed confidence in the Dutch designers, OTB inked an agreement with Viktor Horsting and Rolf Snoeren to continue to be creative directors of the Viktor & Rolf brand. “Previously, we would renew the agreement for three years, but this time, it’s for five years,” Minelli pointed out. The Italian fashion group first invested in the brand in 2008 with a 51 percent stake and raised it to 70 percent in 2019. The remaining 30 percent stake is equally split between Horsting and Snoeren.
OTB’s net financial position stood at 31 million euros compared with 60 million euros in 2023.
