The Power of Creativity: OTB's Resilience in a Challenging Year
In a year filled with economic headwinds and global uncertainty, the OTB Group proved that creativity is the ultimate weapon to navigate through crises. Despite a decline in sales, OTB's commitment to innovation and strategic vision led to remarkable growth stories within its portfolio, particularly at Maison Margiela and Diesel.
But here's where it gets controversial... While some may argue that OTB's focus on creativity is a risky move, the group's CEO, Ubaldo Minelli, believes it is the key to their success. He emphasizes that creativity is not just about aesthetics; it's a strategic approach that combines sustainability, innovation, and a contemporary business mindset.
Let's dive into the details and explore how OTB's creative approach paid off in 2025.
The OTB Group, comprising brands like Diesel, Jil Sander, Maison Margiela, Marni, and Viktor & Rolf, experienced a 5.9% drop in net sales, reaching 1.6 billion euros. However, Minelli highlights that the group's focus on creativity as a core value has solidified its future development.
And this is the part most people miss... OTB's founder and chairman, Renzo Rosso, believes that creativity is the ultimate tool to overcome any crisis. With his bold statement, "Creativity is our true tool to overcome any crisis, as it allows us to anticipate change, innovate, and transform difficulties into growth opportunities," Rosso sets the tone for OTB's unique approach.
Maison Margiela, under the creative direction of Glenn Martens, emerged as a standout performer, growing by a remarkable 8.4%. Martens' first artisanal show in Paris and the brand's international retail expansion, including openings in Canada, Mexico, and the Middle East, contributed to this success.
However, not everything was smooth sailing. OTB's earnings before interest, taxes, depreciation, and amortization decreased by 14% to 237.3 million euros. Operating profit took a hit, falling from 44 million euros in 2024 to 10.1 million euros. Minelli explains that these declines were due to investments in directly operated stores, innovation, and AI, as well as changes in creative direction at Margiela, Jil Sander, and Marni.
The year also saw the reconfirmation of Viktor Horsting and Rolf Snoeren as creative directors of Viktor & Rolf for another five years. They celebrated their three-decade career with an exhibition, "Viktor & Rolf. Fashion Statements," which showcased their unique vision.
On a positive note, Minelli highlights the group's cash generation of 44 million euros, reflecting disciplined management. He also emphasizes Diesel's improved profitability, attributing it to significant investments and a streamlined wholesale channel. Diesel remains the group's largest brand in terms of sales, contributing significantly to OTB's success.
The group's resilience was evident in its performance in various markets. The Japanese market showed strength, accounting for 27.4% of total sales, while the US and Middle East markets saw increases of 5.9% and 9%, respectively. However, Europe and China experienced slowdowns, which Minelli attributes to the wholesale channel and the group's continued belief in the Greater China area.
When asked about the Saks Global bankruptcy, Minelli assures that OTB's exposure is limited, highlighting their prudent approach to risk.
As for the future, Minelli expresses confidence, stating, "2025 will likely be remembered as one of the most challenging years for the fashion sector. In this context, I am particularly proud of the resilience demonstrated by the group." He believes that OTB's expertise and implemented plans position them well for the future.
Regarding the potential initial public offering, Minelli confirms that it remains a strategy but is not time-bound. OTB is focused on long-term business strengthening and group structuring for a more favorable context.
In addition to its business achievements, OTB is committed to sustainability. Rosso, who received the Légion d'honneur, highlights the group's initiatives, including increased use of low-impact materials and renewable energy procurement. The OTB Foundation also made a significant impact through educational projects, emergency response initiatives, and support for female empowerment and the fight against gender-based violence.
OTB's net financial position before IFRS 16 increased by 29% to 40 million euros, reflecting the group's financial stability.
So, what do you think? Is OTB's focus on creativity a brilliant strategy or a risky move? Share your thoughts in the comments, and let's discuss the future of fashion and business!
