Profits at Massimo Dutti Irish stores fall sharply
New accounts show that Massimo Dutti Ireland Ltd sustained the drop in pre-tax profits and revenues, as one of its two Irish stores at the Dundrum Shopping Centre in Dublin was closed for a period for a major refit.
During 2015, the firm’s revenues declined by 4.5% from €8.15m to €7.78m.
Massimo Dutti is a sister firm of Zara and Pull & Bear and are controlled by the world’s largest clothing group, Spain’s Inditex. Massimo fashions for men and women are positioned at the top end of stores in the Inditex group.
Massimo opened its second Irish store at Grafton Street in Dublin in late January 2014.
The premises previously housed HMV’s flagship Irish operation.
Previously, Massimo Dutti’s only Irish outlet was at Dundrum where it has operated since 2005.
According to the directors’ report, Massimo plans to open further stores as soon as suitable opportunities arise as it seeks to increase profitability by chasing an increase in sales.
The fashion retailer operates the sprawling outlet over three storeys on Grafton Street.
The lease costs at Grafton Street contributed to the firm’s operating lease costs totalling €1.37m in 2015.
Numbers employed last year decreased from 41 to 40, while staff costs increased from €1.15m to €1.16m.
According to the directors’ report, its gross margin in 2015 averaged 56% of sales, compared with 60% in the previous year.
The company buys its merchandise exclusively from a group undertaking in Spain.
Selling and distribution costs increased by 3% to €4.1m, reflecting a general increase in costs to maintain operations with the Massimo Dutti brand. The accounts show operating profits totalled €25,000.
It posted non-cash depreciation costs of €378,000. And after accounting for finance costs, the firm recorded a pre-tax profit of €14,000.
Its accumulated profits stood at €837,000.
