Tendam continues to improve its margins in Q1

20 / July / 2019

Tendam continues to improve its margins in Q1

20 / July / 2019

The Group capitalises on the combination of a streamlined store network, a strong CRM area and the high profitability of its digital operation

  • The company takes strategic steps towards becoming the leading data-driven retailer in the market, with high customer engagement levels, premium operational quality and unique analytical and CRM capabilities. The Tendam brands’ loyalty programmes now have 24 million members (+7%)
  • Tendam continued to improve its margins in the first quarter on the back of this strategy and effective stock management. Gross margin now stands at 67.9% (+0.4 pp). EBITDA (under IFRS 16) stood at €44.6 million
  • Total sales saw an increase over the last 12 months despite a slight decline (-1%) in the first quarter of 2019. Online sales, which exceed brick-and-mortar stores in terms of profits, increased by 33% between March and May
  • Tendam opened 10 new directly-operated stores in the first quarter
    Tendam is set to launch a universal credit card in partnership with Banco Santander for all Cortefiel loyalty programme members.
  • Tendam Brands, the parent company of the Group, one of Europe’s leading fashion retailers operating in the specialised chain segment through the Cortefiel, Pedro del Hierro, Springfield, Women’secret and Fifty brands, has announced today its results for the period from 01 March 2019 until 31 May 2019, which corresponds to the first quarter of its 2019/20 financial year.

On the company’s performance, Tendam Chairman and CEO, Jaume Miquel, said: “With June closed and July at an advanced stage, our forecasts for the financial year remain positive, with a steady uptick in like-for-like sales, strong growth in the digital area, improved margins and ongoing stock optimisation”.

LTM revenues[1] ticked upwards slightly YoY (€1,148.4 million versus €1,145.7 million) with a March-May period that posted sales of €218.9 million. Revenues for the first quarter (-1.1%) were affected by poor weather conditions in April and the negative impact of the timing of Easter week. Like-for-sale sales were in clear positive territory in May (+4%). This trend rolled over into June (+4.7%) and July MTD. From March to May 2019, EBITDA –reflecting the application of the IFRS 16– amounted to 44.6 million euros versus 18 million in the same period last year. Excluding the application of IRFS 16, EBITDA would have been reduced by 4.9 million euros.

Figures for the last twelve months, which provide a more transparent overview of the business, demonstrate Tendam’s successful consolidation of an omni-channel management model that enhances stability and boosts profitability. The Group practically doubles its earnings before taxes for the period between June 2018 and May 2019 to €77.4 million (versus €37 million YoY).

Tendam closed the first quarter of the 2019/2020 financial year with a gross margin of 67.9% (+0.4 pp YoY), driven in part by robust stock management, reducing in-store stock.

Online sales, with solid growth across all brands, increased overall by 33% in the first quarter.

Tendam opened 10 new directly-operated stores between March and May 2019, closing the first quarter with a total network of 2014 points of sale.

Tendam is set to lead the market as a best-in-class data-driven retailer

Tendam Chairman and CEO, Jaume Miquel, said: “One of Tendam’s greatest assets is the company’s loyalty programme: more than 24 million members benefit from the integrated omni-channel strategy that is underpinned by an advanced digital proposal bolstered by a streamlined, efficient and profitable store network”.

Tendam is set to become the market’s leading data-driven retailer, with a data-based management model, high levels of customer engagement and premium operational quality rooted in unique analytical and CRM capabilities. In this context, the company is set to launch a new loyalty programme for its outlet chain Fifty in September and will roll-out a universal credit card in partnership with Banco Santander for all Cortefiel loyalty programme members.

Consistent and realistic integrated sustainability

Tendam’s sustainability model is an integral part of its long-term value proposal. The company sets realistic and sustained targets, making headway in the product area with the launch of sustainable collections across all brands.

Springfield’s Reconsider concept now accounts for more than 10% of the brand’s offering, and will continue ticking upwards in upcoming quarters. In this regard, Tendam’s youngest brand, in collaboration with the National Geographic, launched a new clothing collection made from organic cotton and a comprehensive advocacy campaign to promote the conservation of the Mediterranean Sea.

Women’secret successfully launched its Honest line with Save the Ocean, its first swimwear collection made from recycled polyester.

[1] LTM: Last twelve months

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