MILAN — Creativity trumps it all, and helped OTB Group show resilience in 2025, despite a decrease in sales, as it navigated currency headwinds and global uncertainty, observed chief executive officer Ubaldo Minelli.

“The results confirm the group’s solidity, as it continued to focus on creativity as a distinctive value and strategic asset to further strengthen the foundations of its future development,” said Minelli in an interview.

OTB comprises Diesel, Jil Sander, Maison Margiela, Marni and Viktor & Rolf, as well as production arms Staff International and Brave Kid. The Italian group also holds a stake in Amiri.

“I am convinced that creativity must always remain at the core of business processes, even in complex times when the fashion sector is slowing down due to the global economic and geopolitical situation. Creativity is our true tool to overcome any crisis, as it allows us to anticipate change, innovate and transform difficulties into tangible growth opportunities,” stated OTB founder and chairman Renzo Rosso, who turned 70 last year. “Creativity is not just aesthetic; it is a strategic vision that combines innovation, sustainability, and the courage to run a contemporary business. This is the direction guiding the entire OTB Group.”

In 2025, OTB’s net sales fell 5.9 percent to 1.6 billion euros, compared with 1.7 billion euros in 2024. At constant currency, sales were down 5 percent. Turnover amounted to 1.7 billion euros, down 4.8 percent at constant exchange compared with 2024.

While the group does not break down revenues by brand, Minelli highlighted the performance of Maison Margiela, which was up 8.4 percent, registering the most significant growth among the group’s subsidiaries, and “we have reason to believe the growth can be confirmed in 2026.”

Last year, Glenn Martens succeeded John Galliano as creative director of the brand, and the designer unveiled his first artisanal show in Paris during couture week in July, followed by ready-to-wear in October. During the year, the brand continued its international retail expansion, entering Canada, opening its first stores in Mexico and strengthening its presence in the Middle East.

OTB’s earnings before interest, taxes, depreciation and amortization decreased 14 percent to 237.3 million euros, representing a 15.1 percent return on net sales. This compared with 275.8 million euros in 2024 and a 16.3 percent margin.

Operating profit amounted to 10.1 million euros, falling from 44 million euros in 2024.

Minelli explained that margins were impacted by investments in the development of directly operated stores and in innovation and AI. They also were affected by the changes in creative direction at Margiela, Jil Sander and Marni, which led to “a complete revisitation of the offer,” and devaluation of carryovers. In addition to Martens at Margiela, Simone Bellotti joined Jil Sander, succeeding Luke and Lucie Meier, and Meryll Rogge arrived at Marni, succeeding Francesco Risso. Her first fashion show for the brand will take place later this month in Milan.

“The changes took place at the natural expiration date of the contracts with the preceding designers,” Minelli underscored.  

Viktor Horsting and Rolf Snoeren, founders and designers of Viktor & Rolf, were reconfirmed as creative directors in February 2025 for another five years and celebrated three decades of their career with the exhibition “Viktor & Rolf. Fashion Statements,” which, after Munich, was hosted at the High Museum of Art in Atlanta. During the year, Viktor & Rolf returned to rtw with the fall 2025  collection.

On the upside, Minelli touted the group’s cash generation of 44 million euros, which “confirms our disciplined and careful management.”

He also trumpeted Diesel’s improved profitability, as it recorded its best results in the last 10 years, “thanks to the significant investments made in recent years to reposition the brand, the major work done in streamlining and cleaning up the wholesale channel, which is giving its fruits now.” Minelli reiterated that Diesel was the largest brand within the group in terms of sales, contributing the biggest slice of the pie.  

He cited the opening of Diesel stores in Berlin and Seoul, in the latter’s Hannam district, where one of the brand’s largest flagships was conceived as a cultural hub integrating fashion, design and global trends.

After three years without a CEO, in January Andrea Rigogliosi was appointed to the role at Diesel. “We thought it was the right moment for a dedicated CEO and we believe he has a profile that is particularly appropriate for the brand, a great experience and a very strong  retail background,” Minelli remarked.

In 2025, group investments totaled 64 million euros, with a particular focus on direct distribution. Over the year, the retail network rationalization resulted in 49 openings, 58 closures and the relocation of several stores to more strategic locations, bringing the total to 600 directly operated stores at the end of 2025.

Due to these changes, the retail channel was down 2.6 percent, but “at constant currency it was flat,” said Minelli. Retail accounts for 60 percent of group turnover.

Wholesale distribution decreased 14.7 percent following the streamlining of the channel.

Among the highlights was the resilience of the Japanese market, representing 27.4 percent of total sales; a 5.9 percent increase in the U.S., and a 9 percent gain in the Middle East.

Asked about Saks Global’s Chapter 11 bankruptcy, Minelli said “the group’s exposure is limited. We are very prudent, we don’t take many risks and we may have missed on opportunities compared to others. But we negotiated and were paid step by step and we continue the relationship.”

On the other hand, a slowdown was registered in Europe, penalized by the wholesale channel, and in China.

“We still believe in the Greater China area and continue to roll out stores,” said Minelli. In that market, there are 113 directly operated stores. “We celebrated 20 years of Diesel in China last year with new headquarters, and this year in March, Maison Margiela will show in Shanghai, followed by events and exhibitions in cities including Beijing, Shenzen and Chengdu.”

Jil Sander opened a store in Guangzhou, in addition to Tokyo and Dubai, and Margiela opened in Shenzhen with MM6 and Chongqing, in addition to Toronto, Dubai and Singapore.

In the Asia-Pacific region, the Korean market was integrated under the coordination of Japan with the goal to extend the best practices in the latter to support the development of the former, considered a high-potential region.

During the year, OTB started direct operations in Mexico, opening the first nine stores, and began the expansion of its joint venture with Chalhoub Group in Qatar and Kuwait, beginning in 2026.

As a result of these operations, the group has a direct foothold in 27 countries and is active with its sales channels in more than 100 markets.

“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,” said Minelli. Based on “the plans implemented and the widespread expertise” within the group, Minelli said he was “looking to the future with confidence, knowing we can rely on a solid and cohesive structure.”

Asked about the initial public offering that has been in the cards for a few seasons, he said “there were no second thoughts” about it and that “it remains one of our strategies but it is not connected to a time frame. We are strengthening our business for the long term and structuring the group for when the context will be more favorable.”

While rumors always circulate about OTB’s potential investments, Minelli said the group is “always open to consider new opportunities aligned with the positioning and philosophy of the group.” Following the acquisition of Frassineti and Stephen for the production of bags and shoes, respectively, he said “the gap was filled” in that regard and that “if any other opportunities in the pipeline arise we will evaluate them.”

Among other developments, Staff International renewed its agreement with Dsquared2 for five years beginning with the spring 2027 collection for the production and distribution of the brand created and designed by Dean and Dan Caten, strengthening a more than 20-year collaboration.

In 2025, the company also renewed for a further five years the distribution agreement for the Amiri brand in Japan.

Rosso, who received the Légion d’honneur from the French government in January, touted the group’s sustainability initiatives, “further increasing the use of low-impact materials across our brands’ collections, and the procurement of energy sourced from renewables. Once again this year, OTB Foundation made a tangible difference, advancing educational projects against bullying, supporting emergency response initiatives in conflict-affected countries, and promoting female empowerment and the fight against gender-based violence. I am deeply proud of the work of over 7,000 OTB Group employees, whose talent and commitment allow us to continue innovating even in the toughest moments.”

OTB’s net financial position before IFRS 16 increased by 29 percent to 40 million euros compared with 31 million euros in 2024.