Published at 11:36 am
Tendam beats expectations in the first half of 2021 growing sales by 65% and recovering pre-pandemic levels a year early
The company’s first half results reflect outstanding profit growth. Adjusted EBITDA for the first half stands at €131.5m, hitting 95% of the figure for 2019 and climbing €80.1m versus H1 2020, after rising for the fifth consecutive month.
With sales of €515m in the first half of the 2021/22 financial year, up 64.9% versus H1 2020, Tendam outperformed expectations and achieved 92% of its 2019 sales.
The digital business continued to enjoy robust growth, with sales climbing 34.5% versus H1 2020 and standing at +84.5% versus 2019. Digital sales now account for 16% of total sales in Spain.
The multi-brand digital platform now boasts more than 60 third-party brands.
The three new own brands launched by Tendam this financial year (Hoss Intropia, Slowlove and High Spirits) will all post positive EBITDA in their first year.
The company’s cash position is the highest in its recent history, standing at €386.6m for the six months ending 31 August, up 25.5% versus 2020 and 38.5% versus 2019.
The autumn-winter campaign is off to a very strong start for Tendam, with total sales in September up 21.6% versus September 2020 and like-for-like sales up 4.5% versus 2019.
The company is six months ahead of schedule in its sustainable product targets across all brands and its science-based decarbonisation goals have been validated by the SBTI initiative.
Tendam Brands, Tendam’s parent company and one of Europe’s leading omni-channel fashion retailers, today announces its results for the period from 1 March through 31 August 2021, which corresponds to the first half of the company’s 2021-22 financial year.
Tendam Chairman and CEO Jaume Miquel said: “The first half of the year has exceeded our expectations. All our brands and channels performed extremely well and online sales were up by an impressive 34.5%, which is all the more significant given the remarkable growth recorded by the online channel during the year of the pandemic as a consequence of operational limitations at the brick-and-mortar shops”.
Tendam’s total revenues in the reporting period stood at €515 million, up €202.6 million year-on-year and representing a 92% recovery of 2019 revenues for the same period. Like-for-like sales between March and August were up 19.4% versus the same period in 2020 and down by just 1.7% versus 2019.
Between March and August 2021, Tendam’s digital sales were up 34.5% versus 2020 and up 84.5% versus 2019, representing 16% of sales in Spain and 13% of Tendam’s total sales. By brand, online sales were particularly strong at Cortefiel and Pedro del Hierro (+61%) and Springfield (+39%).
Tendam’s portfolio of own brands continues to enjoy robust growth. In the six-month period ending August 2021, Cortefiel and Pedro del Hierro and the outlet brand Fifty boasted their strongest year-on-year growth, up 75.1% and 77.2% respectively. Springfield and Women’secret posted year-on-year growth of 56% and 55.2%, and both Women’secret and Fifty reported higher revenues in the first half of 2021 than in the same period of 2019.
The new brands launched since March (Hoss Intropia, Slowlove and High Spirits) outperformed expectations and will post positive EBITDA in their first year of operation.
The outstanding performance of the company’s multi-brand digital platform, which added 35 new third-party brands in the first half of the financial year bringing the total to 60, validated the success of the company’s business model.
The two initiatives contributed more than 5% to the group’s sales growth in the first half, performing particularly well in the second quarter, when they accounted for 12% of the company’s growth, clearly demonstrating the power of the Tendam 5.0 strategy as an open ecosystem and transformation engine.
Gross margin stood at 62.4%, holding steady versus H1 2019 and climbing more than three percentage points versus the figure for H1 2020. Adjusted EBITDA for the six-month period totalled €131.5m, hitting 95% of the figure for 2019 and climbing €80.1m versus H1 2020, rising for the fifth consecutive month and demonstrating the strength of the group’s growth model.
Tendam’s cash position chalked up a new first-half record in the company’s recent history, standing at €398.6m at 31 August, up 24.5% versus 2020 and 38.5% versus 2019.
The company also reports a strong start to the autumn-winter campaign, with September sales up 21.6% year-on-year and a 4.5% improvement in like-for-like sales versus September 2019; Tendam has therefore successfully recovered pre-Covid sales levels during this financial year, a year earlier than expected.
Jaume Miquel, Chairman and CEO of Tendam, concluded: “Our first half performance, the success of the growth initiatives rolled out under the strategic plan and the positive start to the second half lead us to believe that in spite of macroeconomic pressures related to supply chains and logistics, Tendam is in a strong position to further improve its full-year forecasts.”
Loyalty club membership continues to grow; 2.2 million new members signed up over the last 12 months, taking the total to 28.9 million. The percentage of sales accounted for by loyalty club members in Tendam’s own stores rose by seven percentage points over the last 12 months to total 77.3%.
With regard to sustainability, Tendam has reached its year-end target of ensuring sustainable products account for 25% of all brands’ collections six months ahead of schedule. Another milestone in H1 2021 was the validation of Tendam’s science-based decarbonisation targets by the Science Based Target Initiative (SBTI), which Tendam has joined in a bid to fulfil its commitments to the UN Global Compact, the 1.5º global warming initiative, The Fashion Pact and the United Nations Framework Convention on Climate Change (UNFICCA).