Published at 9:05 am
Tendam locks in its recovery, increases profitability and exceeds pre-pandemic levels in Q3 2021
Tendam’s sales exceeded pre-pandemic levels, growing by 31.3% to €258.8 million in the third quarter of its 2021-22 fiscal year.
Adjusted EBITDA for the quarter stood at €63.5m, up 78.3% versus the same period of 2020 and up 2.2% against 2019’s figures.
Tendam posted €11.2m in earnings before taxes (EBT) during the reporting period, up 124% versus 2019’s pre-pandemic Q3.
The online business continued to enjoy sustained, profitable growth, climbing 22.9% versus Q3 2020 and 101.3% versus the same period of 2019.
The group’s new strategic initiatives (new brands launched in 2021 and its multi-brand, omnichannel platform) accounted for close to 11% of growth between September and November. Hoss Intropia, Slowlove and High Spirits posted positive EBITDA before completing their first year. The multi-brand digital platform now boasts more than 70 third-party brands.
The company’s cash position reached €430.2m, up €74m year on year and €153m more than in the same period in 2019, with net debt down to €424.5m, €10.3m lower than in November 2019 (pre-IFRS 16).
Loyalty club membership climbed by 8.6% to reach 29.5m.
Tendam made strong strides in its sustainability programme, increasing its year-end sustainable garment target to 30% and earning the gold sustainability rating from Ecovadis and an A- from the Carbon Disclosure Project (CDP).
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 September through 30 November 2021, corresponding to the third quarter of the company’s 2021-22 financial year.
Tendam Chairman and CEO Jaume Miquel said: “We are delighted with the company’s performance and the quality with which the initiatives under the Tendam 5.0 umbrella strategy have been rolled out. Tendam has made remarkable progress this quarter in our omnichannel approach, the digitalisation of our points of sale and the consolidation of new brands that were launched in the first half. All this, coupled with the strong performance of our brands, provides further incentive to continue moving forward with our strategy, per our purpose”.
Tendam’s total revenues in the third quarter stood at €258.8 million, up 31.3% versus the same period in 2020 and outperforming the sales figure for Q3 2019 by €2.5 million. Like-for-like sales between September and November were up 26.5% versus the same period in 2020 and 5.7% versus Q3 2019.
In the first nine months of 2021 (March-November), like-for-like sales grew by 22.2% versus 2020 and 0.7% versus 2019.
Tendam’s portfolio of own brands put in an excellent performance. In particular, Cortefiel and Pedro del Hierro, the two brands hit hardest by the pandemic, posted outstanding sales growth of 61.5% versus the nine-month period in 2020.
In the third quarter, Tendam’s digital sales were up 22.9% year on year and up 101.3% versus the same period in 2019, accounting for 19% of total sales in Spain. In the nine-month period between March and November 2021, the digital business grew by 29.5% versus 2020 and 89.3% versus 2019.
Against this backdrop, Jaume Miquel said: “Tendam’s omnichannel model is of paramount importance, with the e-commerce business generating close to 35% of the group’s EBITDA this quarter and profit growth of 30% and brick-and-mortar shops serving as logistics and sales hubs which are fully connected to the digital business”.
The strategic initiatives driven by the company since the beginning of 2021 as part of its Tendam 5.0 plan accounted for 10.8% of Tendam’s growth between September and November. The group’s new own brands (Hoss Intropia, Slowlove and High Spirits) posted positive EBITDA even before completing their first year. The multi-brand digital platform added 10 new brands, taking Tendam’s omnichannel range of brands to a total of 70.
Gross margin for the quarter stood at a robust 66.2%, more than 1 percentage point above 2020 and among the highest in the sector.
Adjusted EBITDA for the quarter totalled €63.5m, up 78.3% versus the same period of 2020 and up 2.2% against 2019’s figures. For the first nine months of the reporting period, adjusted EBITDA stood at €194.9m, outperforming the €108m reported in 2020 and representing more than 97% of the 2019 figure. On a like for like (pre-IFRS 16) basis, adjusted EBITDA was up 3% versus the same nine-month period in 2019.
Tendam’s Q3 EBT (earnings before tax) totalled €11.2 million, up 124% versus pre-pandemic levels in 2019). For the first nine months of the year, EBT totalled €38.6 million, up 4.3% versus 2019.
The company increased its cash position to €430.2m, up €74m year on year and €153m versus 9M 2019, posting record-high cash levels for another consecutive quarter. Net debt was managed down to €424.5m, €10.3m lower than in November 2019 (pre-IFRS 16).
“We are very confident about Tendam’s ability to deliver. Despite current tensions caused by the Omicron variant and global supply chain difficulties, we are characteristically cautious yet optimistic that we will close the financial year at similar levels to 2019,” Tendam Chairman and CEO Jaume Miquel concluded.
Loyalty club membership continues to see sustained growth with 2.3 million new members over the last 12 months, taking the total to 29.5 million. The percentage of sales accounted for by loyalty club members in Tendam’s own stores rose by 3.9 percentage points over the last 12 months to total 78%.
In sustainability, Tendam has seen its strategy validated by upgraded rankings from international sustainability agencies Ecovadis and the Carbon Discloure Project Climate (CDP), recognising the company as a leader in ESG and backing its climate change strategy. Ecovadis promoted Tendam’s score from silver to gold, placing Tendam squarely among the top 4% of top-performing companies. Tendam’s rating from the internationally recognised Carbon Disclosure Project (CDP) rose to an A- in the climate category, well above the retail industry average of B- and among the top 25% sector-leading companies.
Over the quarter, Tendam continued to increase its range of sustainable garments, raising its target to 30% by year-end.
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