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Sunday, Jun 08, 2025

Leadership Transition at Adolfo Domínguez as Adriana Domínguez Takes Charge

Adriana Domínguez assumes full control of the fashion brand, following the departure of CEO Antonio Puente amid ongoing profitability challenges.
Adriana Domínguez has stepped into a pivotal leadership role at Adolfo Domínguez, the renowned Spanish fashion brand known for its slogan 'the wrinkle is beautiful.' Following the recent departure of CEO Antonio Puente on May 8, Domínguez has taken full control over operations, serving also as the creative director and president of the company.

Domínguez expressed gratitude for the eight years she worked with Puente, stating that they had successfully transformed the company's financial situation during that time.

Under recent management changes, Adolfo Domínguez reported its highest turnover in a decade for the fiscal year 2024-2025, amounting to 136 million euros, and has seen three years of consecutive profits, although these profits remain modest at 0.9 million euros last year.

Furthermore, there are currently no plans for reinstating dividends.

In addressing the reason behind the leadership change, Domínguez indicated that personal ambitions and new projects were among the factors.

She emphasized that the transition to her new role is orderly, with Puente remaining available for support during this period of change.

The company's strategy going forward includes a newly appointed general director, Íñigo del Llano, who brings over 20 years of experience from Inditex, where he managed operations across various international markets such as the United Kingdom and Australia.

Domínguez noted that while the company has returned to profitability, the challenges of maintaining this financial health are significant.

For instance, last year's profits were comparable to the revenue from the sale of one of its stores in Bilbao, leading to concerns about the impact of such divestitures on overall profitability.

The brand, which once operated around 700 stores, has been liquidating some of its real estate assets due to changing economic conditions.

To reinvigorate its market presence, Adolfo Domínguez has been proactive in expanding its retail network, opening 25 new stores last year, nearly half of which are in Europe.

Currently, the brand operates 371 stores in about 50 countries.

These expansions are often made in partnership with established retailers like Galeries Lafayette in France and El Palacio de Hierro in Mexico, as well as with the Chalhoub Group in the Middle East, planning to open 16 stores by 2027.

Geopolitical factors have also been challenging for the brand, particularly fluctuations in the value of currencies such as the Mexican peso, Japanese yen, and US dollar, alongside disruptions in logistics and supply chains.

The cost of raw materials is on the rise, necessitating a continual evaluation of supplier relationships to align with business needs.

Despite these challenges, Domínguez stated that the company has achieved a 7.8% growth in sales in the last exercise, which she attributes to a successful renewal of the brand's customer base.

In a strategic move to solidify its identity as a 'designer fashion' brand, Adolfo Domínguez has developed a new creative process called Ágora, which emphasizes original design over trend imitation.

The brand now introduces two annual collections, each inspired by a unique concept drawn from its heritage.

This approach aims to cater to a younger demographic seeking distinctive and prestigious garments rather than everyday wear.

Domínguez also affirmed the company's commitment to sustainability, achieving BCorp certification, which acknowledges its adherence to rigorous social and environmental standards.

Recent technological innovations have included the launch of services like ADN Box, which leverages artificial intelligence for personalized clothing selections delivered to customers, ADN Rent for garment rentals, and ADN Live for immersive fashion show experiences.

As the brand approaches its 50th anniversary, it positions itself within a highly competitive fashion industry, reaffirming its focus on efficiency and adaptability.
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