Orchestra’s turnaround is confirmed, according to Christophe Pla, CEO of NewOrch, the parent company of Orchestra. The group is projected to reach €535 million in revenue for the fiscal year ending February 28, a figure it hasn’t seen in five years, combining its core children’s apparel business – serving ages 0 to 14 – with its baby product line.
The company anticipates an operating margin of 7% and a net result representing 3% of revenue, Pla stated during a press briefing on February 17. “We have restored growth, re-established trust with employees and streamlined the structure, and we are profitable again,” he emphasized. Debt related to the company’s restructuring was repaid in September 2024.
Loyalty Program and Private Labels Drive Growth
A key driver of the company’s success, according to Pla, is its “Club” loyalty program, which accounts for 90% of total revenue. Approximately 80% of sales are also generated through Orchestra’s private label brands. The Club membership base is growing for the third consecutive year, increasing by 5 to 7% to reach 1.5 million members. The annual membership fee of €30 provides permanent discounts, including 50% off children’s fashion and 20% off baby products.
The resurgence of Orchestra comes as retailers increasingly focus on customer loyalty programs to navigate a competitive market and economic uncertainty.
Potential Sale Under Consideration
Regarding a potential sale of the company, Pla stated, “We are waiting for the right candidate.” He added that the primary concern is ensuring the long-term viability of the group and preserving employment in Montpellier, France, where both President Pierre Mestre and Pla are based. Orchestra narrowly avoided bankruptcy in 2019 before being acquired by its founder, Pierre Mestre, through a court-supervised process in June 2020.
However, not all ventures within the NewOrch group are thriving. Maison Combelle, a subsidiary specializing in wooden children’s furniture based in Marmanhac, Cantal, entered judicial reorganization proceedings in early February. Despite significant investment, the company has been unable to achieve profitability. “It’s extremely difficult, despite our efforts, to maintain production in France,” Pla admitted.
Orchestra currently operates 450 stores in 25 countries and employs 4,600 people.
Jules Mestre
Photo d’illustration : Un magasin de l’enseigne Orchestra. Crédit : DR.
Notes
[1] Clôture le 28 février
