Published at 11:38 am
Tendam quadruples its sales in the first quarter of its 2021/22 financial year
In the first quarter of the 2021/22 financial year, the company posted sales of 197.9 million euros, up 280% versus Q1 2020 and recovering to 90.4% of 2019 sales. Like-for-like sales were up by 32.6%.
Digital sales continued to enjoy robust growth, climbing by 40% versus 2020 and standing at +90.7% versus 2019.
The first quarter results reflect a positive performance in terms of profitability, with adjusted EBITDA totalling 40.5 million euros, closing Q1 in positive territory for the fourth consecutive quarter and coming in at just 4.1 million euros under the figure for Q1 2019.
The company further reinforced its comfortable cash position to a total of 333.8 million euros at the end of Q1 2021, improving on the cash holdings of 251.1 million euros posted in Q1 2020 and 214.3 million in Q1 2019.
The third-party brands incorporated into the Group’s online platform, in addition to new Tendam brands Hoss Intropia, Slowlove and High Spirits, now represent 2% of total sales, increasing their combined contribution to Tendam’s growth to +8.1%.
The number of loyalty club members continued to climb steadily at 6.5% to exceed 28.3 million.
Tendam Brands, Tendam’s parent company and one of Europe’s leading omnichannel fashion retailers, today announces its results for the period from 1 March through 31 May 2021, corresponding to the first quarter of the company’s 2021-22 financial year.
“The company outperformed our initial expectations in the first quarter. The contribution to Q1 results by both the third-party brands integrated into the online platform and new Tendam brands, the recovery in sales and the strong performance in the early part of the second quarter all demonstrate that the radical transformation rolled out by Tendam is already adding value and building a sustainable, profitable growth model,” said Tendam Chairman and CEO Jaume Miquel.
Tendam’s total revenues in the first quarter of 2021 stood at 197.9 million euros, up 145.9 million versus Q1 2020 and recovering to 90.4% of total sales in Q1 2019. Like-for-like sales were up 32.6% versus the period from March through May 2020, and down by just 1.7% versus the same quarter of 2019. In the first three months of 2021, the performance of the business was constrained by the closure of 23% of the store network in March and April to contain the fourth wave of the Covid-19 pandemic.
The brand portfolio has shown remarkable strength, with Women’secret registering robust, sustainable growth (+208.1% vs. 2020 and +4.8 vs. 2019) and Cortefiel/Pedro del Hierro posting the strongest recovery versus Q1 2020 (+342.4%). The integration of third-party brands into the digital platform, which now features a total of over 50 brands, and new Tendam brands Hoss Intropia, Slowlove and High Spirits also made an outstanding contribution to the company’s performance. These strategic new additions now account for 2% of the Group’s total sales, increasing their contribution to Tendam’s growth to +8.1%.
Digital sales were up 40% versus 2020 and stood at +90% vs. 2019, representing 16% of sales in Spain and 13% of Tendam’s total sales. By brand, Fifty, Cortefiel and Springfield posted outstanding growth of 153%, 82% and 55% respectively.
Tendam’s first quarter results reflected a strong performance in terms of profitability, with adjusted EBITDA totalling 40.5 million euros between 1 March and 31 May 2021 and closing in positive territory for the fourth quarter running.
The company further reinforced its comfortable cash position over the period to 333.8 million euros, improving on the cash holdings of 251.1 million euros posted in Q1 2020 and 214.3 million in Q1 2019.
Tendam Chairman and CEO Jaume Miquel said: “I am very satisfied with the company’s performance this quarter, which clearly evidences the strength of Tendam’s transformation model and its capacity to generate sustainable, profitable growth as an open, omni-channel ecosystem with the ability to optimise total traffic of over 400 million shoppers. By the end of the first half, we expect to have recovered 90% of 2019 EBITDA.”
“I want to be clear that the shareholders’ commitment to the company is absolute, as is their support for the radical Tendam 5.0 transformation plan. The overarching goal of the Board of Directors and the management team is to create value and ensure sustainable, profitable business growth, irrespective of any potential future opportunities,” Miquel added.
The number of loyalty club members has continued to climb steeply, totalling 28.3 million on 31 May after 2.2 million new members joined over the last 12 months. Out of the total in-store sales generated by Tendam own brands, loyalty club members account for 81.9%.
Tendam is making excellent headway with its sustainability agenda. Over the first quarter, Tendam has rolled out a successful pilot project at Springfield to reduce B2B plastic use to the rest of the Group brands. In addition, on the back of the Group’s acquisition of Slowlove – which is fully focused on sustainable collections – Tendam hopes to achieve its goal of ensuring that sustainable products account for 25% of all purchases by the end of 2021.