Despite the odds, OTB Group's 2025 performance shines a light on the power of creativity in the fashion industry. In a year marked by global uncertainty and economic challenges, OTB's resilience is a testament to the enduring value of innovation.
The Group's CEO, Ubaldo Minelli, attributes their success to a creative-centric approach, stating that it is the key to navigating turbulent times. This philosophy is echoed by OTB founder and chairman, Renzo Rosso, who emphasizes creativity as a strategic asset, enabling the group to transform challenges into growth opportunities. But here's where it gets interesting: in a year of declining sales, how did OLB pull off this feat?
OTB's portfolio boasts renowned brands like Diesel, Jil Sander, Maison Margiela, Marni, and Viktor & Rolf, along with production powerhouses Staff International and Brave Kid. In 2025, OTB's net sales dipped by 5.9% to €1.6 billion, down from €1.7 billion in 2024. However, the group's resilience is evident in the performance of Maison Margiela, which saw an impressive 8.4% growth, the highest among its subsidiaries. This growth is attributed to the brand's new creative director, Glenn Martens, who took over from John Galliano and showcased his debut artisanal collection in Paris during couture week, followed by ready-to-wear in October.
The brand's international expansion, including new stores in Canada and Mexico, and a strengthened presence in the Middle East, further contributed to its success. OTB's EBITDA decreased by 14% to €237.3 million, while operating profit fell significantly from €44 million in 2024 to €10.1 million. Minelli attributes this to investments in directly operated stores, innovation, and AI, as well as creative changes at Margiela, Jil Sander, and Marni, which led to a refreshed brand image.
The group also celebrated the reconfirmation of Viktor Horsting and Rolf Snoeren as creative directors of Viktor & Rolf for another five years, marking three decades of their influential career. OTB's cash generation of €44 million is a testament to its disciplined management, while Diesel's improved profitability, with its best results in a decade, is a result of strategic brand repositioning and wholesale channel optimization.
The group's expansion in 2025 included the appointment of Andrea Rigogliosi as CEO of Diesel, the opening of new stores in Berlin and Seoul, and the rationalization of its retail network, resulting in 49 openings and 58 closures. The group's resilience is further demonstrated by its performance in various markets. While the Japanese market showed resilience, representing 27.4% of total sales, the U.S. and Middle East markets saw growth of 5.9% and 9%, respectively.
OTB's cautious approach to risk is evident in its limited exposure to Saks Global's Chapter 11 bankruptcy. However, the group continues to believe in the Greater China area, with 113 directly operated stores and plans for further expansion. Jil Sander and Margiela's store openings in Guangzhou, Shenzhen, and Chongqing, along with Toronto, Dubai, and Singapore, showcase their global reach. The integration of the Korean market under Japan's coordination is a strategic move to leverage best practices and support growth in a high-potential region.
OTB's direct operations in Mexico and the expansion of its joint venture with Chalhoub Group in Qatar and Kuwait demonstrate its commitment to global expansion. The group's sustainability initiatives, including the increased use of low-impact materials and renewable energy, and the OTB Foundation's educational and social impact projects, further solidify its commitment to responsible business practices.
As the fashion industry navigates a challenging landscape, OTB's 2025 performance offers a compelling case study in resilience and creativity. The group's focus on innovation, strategic investments, and global expansion positions it for future success. But the question remains: in an industry known for its fickleness, can OTB maintain this momentum? What do you think? Share your thoughts in the comments below.
