Madrid, 06 February 2017 – Grupo Cortefiel, a leading international fashion retailer, today announced strong operating and financial results for both the Group and its parent holding company for the first nine months of financial year, which runs from 1 March to 30 November 2017[1].
Adjusted EBITDA grew by 81.7% to 110.9 million euros, versus 61 million euros in the first nine months of the 2016/17 financial year. Adjusted EBITDA LTM[2] was up 60% from 102.5 million euros in November 2016 to 164.5 million in 2017.
This improved EBITDA was underpinned by an increase in sales, a 3.0 percentage point rise in gross margin over sales and a 2.9% improvement in operating leverage.
| March-November 2017/18 |
March-November 2016/17 |
% change | |
| Income | €810.3m | €779.8m | +3.9% |
| Gross margin | €512.4m
63.2% |
€469.7m
60.2% |
+9.1%
3.0% |
| Adjusted EBITDA | €110.9m | €61.0m | +81.7% |
The Group’s income for the period was up 4% year on year to over 810 million euros, reflecting the constant growth in sales.
The online channel performed particularly well; sales were up 33.4% in the overall figures for the first nine months, with growth rates of over 30% across all brands. In the third quarter of the year, e-commerce sales for Grupo Cortefiel as a whole grew by over 40%.
Grupo Cortefiel CEO Jaume Miquel said: “The improvement in profitability in the first nine months of this financial year clearly reflects the strategy implemented in September 2016, which involves strengthening the brands, streamlining the store portfolio, stepping up the expansion plan, controlling stock and improving margins, as well as measures to contain operating expenses.”
“All channels saw strong performance, especially the constant and exceptional growth of the digital channel, which grew by over 30% and represents one of the key drivers of future growth”, Miquel added.
Member figures for Grupo Cortefiel’s clubs and cardholder programmes, one of the Group’s key assets, grew to 21.6 million for all group brands in the first nine months of this financial year. Total club sales were up by 6% versus the first nine months of the 2016/17 financial year.
At the end of the period, the Group’s net debt was down to 555.9 million euros.
As at 30 November, Grupo Cortefiel had a sales network comprising 1,971 stores in over 80 countries, of which 1,181 are directly operated, 678 are franchises and 112 are corners. During the third period, the Group opened to points of sale in Spain, Portugal, Russia, Ireland, Slovenia, Lebanon, Qatar and the Dominican Republic, among others.
-ENDS-
[1] Grupo Cortefiel’s 2017/18 financial year runs from 1 March 2017 to 28 February 2018.
[2]LTM: Last Twelve Months.