Tendam’s omnichannel ecosystem drives 9% rise in sales in financial year 2022

• The Tendam omnichannel ecosystem, which combines digital and brick-and-mortar stores with advanced analytics, has proven its ability to deliver consistent growth and profitability 
• These results evidence the successful implementation of the Tendam 5.0 strategic plan, which has delivered strong operational and financial fundamentals to underpin a new phase of development 
• Total sales increased by almost €100 million (+8.8%) to €1.21 billion in financial year 2022. Like-for-like sales were up more than 10% year on year 
• Tendam’s digital business posted growth of 10.6% and now accounts for 19% of total sales in Spain 
• The strategic growth drivers under Tendam 5.0 (new own brands, multi-brand platform and an omnichannel approach) have been instrumental to the success and profitability of the model. These initiatives accounted for nearly 5% of total sales and contributed almost 30% to the company’s net growth 
• Gross margin stood at €741.9 million, up €51.1 million versus 2021, and closed the period at 61.3%, outperforming the retail industry average thanks to the successful positioning of Tendam’s brands in the premium mass market 
• Adjusted EBITDA totalled more than €285 million over the period, up 3% versus 2021 
• Footfall and sales continued to rise at a store network which benefits from an intimate connection with the digital business, acting as both a logistics hub and a meeting point for the eleven own brands and more than 140 third-party brands on the multi-brand platform 
• Robust cash generation allowed Tendam to pay down pre-IFRS 16 net debt to €340.4 million and deliver a substantial cut in its net debt to EBITDA ratio to 2.1x 
• The number of loyalty club members – which is a substantial component of a business based on customer knowledge, engagement and optimising the customer experience – was up by +8.4% to stand at 32.7 million 

On the company’s performance over the year, Tendam Chairman and CEO Jaume Miquel said:

“In 2022, we gave significant added momentum to the transformation agenda designed in 2020, which has allowed us to position Tendam as a unique, unrivalled omnichannel ecosystem which is profitable and has strong growth potential. Our strategic growth drivers under Tendam 5.0 were instrumental in securing greater market share and rolling out a real omnichannel model affording access for customers anytime, anywhere.” 

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 share1, has today announced its results for the period from 1 March 2022 through 28 February 2023, corresponding to its 2022-23 financial year.

An unparalleled omnichannel ecosystem underpinning a strong operational performance 

In the financial year 2022, Tendam’s total sales were up 8.8% year on year to stand at €1.21 billion. On a like-for-like basis, sales were up 10.4% versus 2021 and 9.2% versus 2019. Tendam’s digital business posted growth of 10.6% versus 2021 and now accounts for 19% of total sales in Spain.

On a like-for-like basis, all Tendam brands outperformed their results for the last two years, confirming the effective positioning both of the brands and of their collections.

One of the company’s strategic growth drivers is the incubation and launch of its own new brands; this strategy has seen six new brands integrated into the Tendam portfolio over the last two years. Following the launch of Hoss Intropia, SlowLove and High Spirits in 2021, Tendam launched women’s sportswear brand Dash and Stars and the first new brand designed specifically for men, OOTO, in 2022. HI&BYE, Tendam’s first underwear and swimwear brand for Gen Z customers, began operating in 2023.

Growth initiatives, new own brand launches and the multi-brand platform – which now features 140 brands – performed well and now account for 4.8% of the group’s total sales.

Tendam continues to roll out its global expansion, opening new stores for its core brands in Mexico, where it now has a digital store and more than 120 physical points of sale, including directly-operated stores and franchises, as well as Ecuador, Peru, Venezuela and the UAE, among others.

In Iberia, where the Tendam ecosystem is better developed, the store network delivered an excellent omnichannel performance thanks to its dual function as both a logistics hub for collections, returns and last-mile deliveries and a hub for online sales.

A total of 20% of all digital sales take place in physical stores. Out of total online sales, 53% of collections and 77% of returns take place in Tendam’s brick-and-mortar stores.

The group’s strategy is intended to deliver the best possible customer experience and the greatest possible access to its products. The customer is at the core of the business, and customer knowledge is one of its greatest assets. The number of loyalty club members for Tendam’s brands stood at 32.7 million (+8.4%) at the end of the financial year 2022, with 2.5 million new members joining up over the period. Multiclub and multichannel customers accounted for 25.2% of total sales for the year.

Robust financial background to support future business development 

Effective management of the business model, active deployment of promotional activity and rigorous inventory control have all helped keep margins at very robust levels. Gross margin stood at €741.9 million, up €51.1 million versus 2021, and closed financial year 2022 at 61.3%, outperforming the sector average thanks to Tendam’s strong position in the premium mass market segment.

Adjusted EBITDA for the period totalled over €285 million, up 3% versus 2021.

Robust cash generation over the year allowed Tendam to pay down net debt by €33.4 million to €340.4 million (pre-IFRS 16), delivering a substantial improvement in its net debt to EBITDA ratio, which closed financial year 2022 at 2.1x, versus 2.42x in 2021.

Tendam Chairman and CEO Jaume Miquel said:

“The omnichannel model is the future of retail and Tendam is already positioned for success. 

The excellent deployment of the Tendam 5.0 strategic plan by our entire team has allowed us to continue to drive the Group forward to even higher levels of growth and profitability. 

Early figures for 2023 already reveal strong progress for our growth model.” 

A firm commitment to ESG 

Tendam joined the Carbon Disclosure Project’s (CDP) climate A-list, beating the retail sector average of B-and positioning itself among the top 25% leading global companies in the field. It also joined other top-level global retailers on the “Retailers for climate” initiative.

At the end of the financial year, 43% of the products in the company’s collections boasted sustainable characteristics. The company also eliminated 97% of single-use plastics.

Tendam renewed its adhesion to the European Diversity Charter – a series of best practices to support equality and non-discrimination, promoting diversity and respect in the workplace – for the 20-23 period.

Tendam’s Board of Directors also achieved gender parity at the end of the second quarter of financial year 2022, and 61% of executive roles at the company are now held by women.