Tendam surpasses €600 million in the first half of the year and boosts Ebitda by 8.2%
Roberta HERRERA
The Tendam Group achieved revenues of 606.2 million euros during the first half of its fiscal year, spanning from March 1 to August 31, 2023. This represents a 5% increase in sales compared to the same period in 2022, as announced on Thursday. The company, which owns brands like CortefielSpringfield
“Tendam continues to demonstrate solid performance that aligns seamlessly with the Tendam 5.0 strategy. During the first half of the year, the group accelerated all its new strategic initiatives, which already account for 32.5% of the company’s overall growth during the period. Along with the decrease in inflationary pressures, the surge in sales has also translated into enhanced margins and increased profitability,” commented Jaume Miquel, president and CEO of the group.
The company’s Tendam 5.0 strategy encompasses lines of action such as strengthening the portfolio of its in-house brands, introducing new ones (in the first half of 2023, the company launched Hi&Bye, a brand dedicated to underwear targeted at Generation Z, and the Springfield Kids line), and advancing its omnichannel approach. This model involves partnering with third-party brands in its retail stores and e-commerce. Thus, the group’s marketplace now boasts an impressive 150 available brands in the first half of this fiscal year.
In its results report, Tendam also explained that “all core brands experienced growth during the semester,” notably an 8.3% surge in sales for Cortefiel and Pedro del Hierro. On an international scale, the conglomerate places substantial focus on Mexico, a pivotal market in its international expansion plan. In Mexico, sales increased by 20.4%, and the group now boasts 120 points of sale in the region.
Furthermore, the financial statement reports a gross margin of 63.3% at the end of August, marking a 1% increase from the same period in 2022. This rise is attributed to a “more favorable inventory position and reduced cost pressure within the supply chain,” according to the company. Notably, Tendam’s pre-tax profit for the first half of the fiscal year stood at 43.6 million euros, marking an 18.5% increase from the previous year.
Supported by these strong financial results, the parent company of Cortefiel, Women’secret, and Pedro del Hierro recently announced the early redemption of 190 million euros in bonds set to mature in 2028. This strategic move prompted leading rating agencies such as S&P Global and Moody’s
“The strong operational and financial performance of the plan implemented over the past years, the consistent evolution in sales and profitability, and the recent endorsement of improvements in credit rating forecasts by leading rating agencies make Tendam and its shareholders consider possible strategic alternatives to take the company to its next phase of growth, including the possibility of conducting an initial public offering on a regulated market,” stated Miquel, referring to the group’s long-standing aspiration.
The fashion company expanded its commercial network with 25 openings within the last year, concluding the previous quarter with a total of 1,829 points of sale. Among these, 1,172 were self-managed stores and corners, and 657 were franchises.
