Massimo Dutti aims to open more Irish stores despite slump in pre-tax profits
Fashion giant Massimo Dutti has confirmed it intends to open further Irish stores as soon as opportunities arise - as pre-tax profits at the firm plummeted by 98pc to €14,000.
New accounts show Massimo Dutti Ireland last year sustained the drop in pre-tax profits and revenues as one of its two Irish stores at Dundrum Town Centre was closed for a period for a major refit.
During 2015, the firm's revenues declined by 4.5pc from €8.15m to €7.78m.
The firm opened its second Irish store at 65/66 Grafton Street in Dublin at the end of January 2014 in premises which previously housed HMV's flagship Irish operation.
According to the directors' report, they plan to open further stores as soon as suitable opportunities arise and have targeted a rise in profitability as a result of the continuing increase in sales.
The fashion retailer operates the outlet over three storeys on Grafton Street and this contributed to the firm's operating lease costs totalling €1.37m in 2015.
Numbers employed last year fell from 41 to 40 with staff costs increasing from €1.15m to €1.16m. The gross margin for the year averaged 56pc of sales compared to 60pc for the previous year.
The company's merchandise is purchased exclusively from a group undertaking in Spain. Selling and distribution costs rose by 3pc to €4.1m.
The profits take account of non-cash depreciation costs of €378,000.
Shareholder funds of €2.33m included €474,000 in cash. The firm's accumulated profits stood at €837,000.
Massimo Dutti is part of the Spanish-based Inditex clothing group, which is behind the huge Zara brand. It was founded in 1985 and was acquired by Inditex in 1991. It now has over 860 stores in more than 74 countries.