In the first half of financial year 2023-24, total revenues were up 5% to €606.2 million and like-for-like sales grew by +6.2%.

The company’s new strategic initiatives, new own brands and multi-brand platform doubled their contribution, delivering 32.5% of Tendam’s net growth over the period.

Gross margin was up by 1 percentage point thanks to a stronger inventory position and lower cost pressure in the supply chain

The number of loyalty club members increased by 7.8% to almost 34 million

During the period, Tendam launched its own underwear and swimwear brand HI&BYE and the kids’ clothing line Springfield Kids The company increased the number of third-party brands available on its multi-brand platform to 150

After the end of H1, rating agencies S&P and Moody’s both upgraded the outlook on their ratings for Tendam Brands from stable to positive

Tendam Chairman and CEO Jaume Miquel said: “Tendam continues to deliver a strong performance in line with the Tendam 5.0 strategy. In the first half of the year, the group stepped up the pace of all its new strategic initiatives, which accounted for 32.5% of the company’s growth over the period. Sales growth, combined with easing inflationary pressures, also led to further improvements in margins and profitability.”

Tendam Brands, the parent company of Tendam, one of Europe’s leading omni-channel fashion retailers and the second largest operator in the Spanish market by market share[1], has today announced its results for the period from 1 March through 31 August 2023, corresponding to the first half of its 2023-24 financial year.

Tendam’s total revenues in the first half stood at €606.2 million, up 5% versus the €577.4 million posted in the same period last year. Like-for-like sales were up 6.2% versus H1 2022.

The strategic growth drivers under Tendam 5.0  delivered an even stronger contribution to the company’s results. New initiatives accounted for 32.5% of net growth over the first half, up from 18.6% in H1 last year, and now represent 5.3% of total sales. These results underscore the effectiveness of the Tendam 5.0 plan, which encompasses lines of action to strengthen group’s own brands, launch new labels, engage with consumers and build a unique, omni-channel ecosystem which is open to third-party brands and seamlessly integrates the digital and physical businesses. In the first half of year, Tendam launched HI&BYE, its own brand for underwear and swimwear for young people, and the Springfield Kids line, as well as increasing the number of third-party brands on the multi-brand platform from 110 to 150.

Tendam’s portfolio put in an outstanding performance in the first half of the year with growth in sales across all the group’s core brands. Cortefiel and Pedro del Hierro posted outstanding sales growth of 8.3%.  Globally, one of the best-performing markets was Mexico, a key market in the group’s international expansion plan where sales were up by 20.4%, in line with previous quarters, and where Tendam is now approaching 120 points of sale.

At the end of the first half, Tendam’s gross margin stood at 63.3%, up 1 percentage point year on year thanks to a stronger inventory position (-4%) and lower cost pressure in the supply chain.

Adjusted EBITDA in H1 2023 totalled €151.0 million, up 8.2% versus €139.6 million in the first half of 2022.

At the end of the first half, Tendam’s profit before tax amounted to €43.6 million, up 18.5% versus the first half of the previous year.

Tendam’s store network totalled 1,829 points of sale at the end of the period, of which 1,172 are own-brand stores and department store corners and 657 are franchises. In the last twelve months, Tendam’s store network has chalked up 25 net openings.

Over the first half, the number of loyalty club members rose by 7.8% to stand at 33.9 million.

Tendam continued to make strong inroads on its sustainability roadmap, and at the end of the first half, the proportion of products with sustainable content hit the 50% mark, beating the targets set ahead of schedule.

The group’s pre-IFRS 16 net debt for the period was €358.9 million, representing a net debt-to-EBITDA ratio of 2.1x. Tendam continues to deliver on its commitment to deleverage and optimise its borrowing costs.

After the end of the reporting period, in October, the rating agencies S&P Global and Moody’s both upgraded the outlook on their ratings for Tendam from stable to positive. The company also announced the early redemption of €190 million of its €300 million backed senior secured floating rate notes maturing in 2028. This early redemption and debt restructuring will reduce the Group’s annual interest payments by more than 20%, affording it a strong competitive advantage and allowing it to step up its growth plans.

Despite the uncertain macroeconomic landscape, Tendam is approaching the second half of the financial year with cautious confidence and maintains its initial sales growth target of over 5%. The company will remain focused on accelerating its 5.0 growth drivers and on enhancing lines of profitability.

Tendam Chairman and CEO Jaume Miquel said: “As a result of Tendam’s strong operating and financial performance under the plan implemented in recent years, its consistent performance in both sales and profit and the recent upgrades to its rating outlook by the top rating agencies the company and its shareholders are contemplating potential strategic alternatives to drive the company forward to its next growth phase, including the possibility of an initial public offering of its shares on a regulated market.”

[1]Tendam is Spain’s second largest specialist fashion retailer by market share. Source: Kantar.

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