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Jan 27, 2022
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Tendam's sales growth acceleration in the third quarter exceeds pre-pandemic figures

Translated by
Jan 27, 2022

Tendam exceeded its pre-pandemic figures during the third quarter of the 2021/2022 financial year, which ran from September 1 to November 30. The Spanish fashion group, which owns brands such as Cortefiel and Springfield, reported total revenues of €258.8 million, 31.3% higher than in 2020 and €2.5 million higher than in 2019. 

Tendam’s third quarter sales exceeded 2019 sales by €2.5 million - Tendam

The company revealed in a press release on Thursday that in the first nine months of 2021 (March-December), like-for-like sales grew 22.2% compared to 2020 and 0.7% compared to 2019. 

The group reported that the gross margin stood at 66.2%, 1% higher than in 2020. Recurring Ebitda for the third quarter reached €63.5 million, up 78.3% compared to 2020 and 2.2% compared to 2019. 

“In the first nine months of the year, recurring Ebitda amounted to €194.9 million, €108 million higher than in 2020 and more than 97% compared to 2019,” said Tendam. 

In addition, the conglomerate’s earnings before taxes (EBT) totaled €11.2 million during the third quarter, between September and November, indicating an increase of 124% compared to Q3 in 2019. For the first nine months of the year, EBT stood at €38.6 million (up 4.3% compared to 2019). 

Meanwhile, the liquidity ratio rose to €430.2 million, €74 million more than in the same quarter of 2020 and €153 million more compared to the same period in 2019, “consolidating for yet another quarter the company’s highest levels of liquidity, reducing net debt to €424.5 million and standing €10.3 million below November 2019 (pre-IFRS 16),” explained the company. 

“We are very satisfied with the evolution of the company and with the quality of execution of all the strategic initiatives under the Tendam 5.0 umbrella strategy. During this quarter the group has made remarkable progress in its omnichannel, in digitalization of points of sale, and in consolidating our new brands launched during the first half of the year. This, along with high brand performance, represents our purpose of continuing to accelerate this strategy,” said Jaume Miquel, chairman and CEO of Tendam. 

In this regard, Tendam's new brands (Hoss Intropia, Slowlove and High Spirits) recorded positive Ebitda before completing their first year within the conglomerate’s portfolio. Meanwhile, Tendam’s established labels that had suffered significantly during the pandemic, such as Cortefiel and Pedro del Hierro, increased their sales by 61.5% in the first nine months of the fiscal year compared to 2020. 

Digital sales account for 19 % of Spain's total sales

The company’s online channel, a strategic bet of the company, increased its sales by 22.9% in the third quarter compared to 2020, and by 101.3% compared to 2019. 

“During these nine months, our digital sales increased by 29.5% and 89.3% compared to 2020 and 2019, respectively,” the group said, adding that online sales already account for 19% of the total sales in Spain. 

Furthermore, Tendam’s multi-brand digital sales platform, which celebrated its one-year anniversary last September, reached 70 brands. 

“The e-commerce sales generated nearly 35% of the group’s Ebitda in this third quarter, with a profitability of 30% in an omnichannel model in which the brick-and-mortar stores act as logistic and sales hubs that are 100% connected to our digital sales,” said Miquel.  

Despite the evolution of the pandemic with the spread of the omicron variant as well as tensions in the global supply chain, Tendam remains “very positive” and is confident it will close the year “with figures similar to those of 2019.” 

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