Published at 11:14 am
Tendam posts robust 18.6% increase in sales and grows market share in first quarter of 2022
Tendam’s impressive performance has positioned the company comfortably above pre-pandemic levels, with like-for-like sales up +11.3% versus 2019 and digital sales climbing from 8% to 17% of the total in Spain.
In the first quarter of financial year 2022, Tendam’s total revenues grew by 18.6% to €234.8 million, outperforming the Q1 2021 figures across all channels and brands. The digital channel grew by 19%.
Adjusted EBITDA for the quarter stood at €47.3 million, up 16.8% versus the same quarter of the previous year. EBITDA from the online business now accounts for about one third of the group’s total EBITDA.
The company’s cash position also improved versus Q1 2019 to over €300 million.
The company is set to launch another own brand in September, its fifth in the last twelve months.
Tendam Brands, the parent company of Tendam, one of Europe’s leading omnichannel specialist fashion retailers, today announces its results for the period from 1 March through 31 May 2022, corresponding to the first quarter of the company’s 2022-23 financial year.
Tendam President and CEO Jaume Miquel said: “The robust growth posted by Tendam in the first quarter underscores the success of our transformation agenda and positions the company comfortably above pre-pandemic levels. Our highly profitable, unparalleled integrated omnichannel ecosystem, which allows us to create and grow our own brands whilst remaining open to third party names, has proven its ability to gain freed-up market share and afford a robust competitive advantage over the rest of the market.”
Tendam’s total revenues for the first quarter of 2022 stood at €234.8 million, climbing by 18.6% year on year and 7.3% versus the first quarter of 2019, before the pandemic. On a like-for-like basis, sales grew by 16.9% versus 2021 and 11.3% versus 2019. Revenues were up across all channels in the first quarter of financial year 2022.
Tendam’s portfolio put in an outstanding performance with growth in total sales across all own brands versus 2021. The top performers were Springfield and Cortefiel/Pedro del Hierro, which posted sales growth of 24.3% and 19.4%, respectively.
Digital sales increased by 19% versus Q1 2021 and were up by 127% versus 2019. At the end of the first quarter of 2022, the digital business accounted for 17% of total sales in Spain, more than twice the proportion it represented pre-Covid. All brands saw stronger digital sales, particularly Cortefiel/Pedro del Hierro, which posted an increase of 38%.
Tendam’s strategic growth drivers continued to buoy the company’s results, underscoring the effectiveness of the Tendam 5.0 plan. These initiatives, spearheaded by the recently-launched new brands and the onmichannel multi-brand platform – which now features a total of 100 labels – have had a positive impact on Tendam’s total sales and incremental EBITDA and driven greater engagement with new, younger customers. They accounted for 121% of Tendam’s growth in the first quarter of 2022 and now represent 3.8% of the company’s total sales.
In line with its strategy, Tendam is set to launch a new own brand in September, a 100% sustainable men’s label which is the fifth brand launched by Tendam in the last 12 months. Sales by Tendam’s new own brands – Hoss Intropia, Slowlove, High Spirits and Dash & Stars – posted double-digit first quarter growth.
Adjusted EBITDA for the first quarter stood at €47.3 million, up almost 17% versus the comparable quarter of 2021 and significantly outperforming pre-Covid levels. EBITDA from the online business now accounts for about one third of the group’s total EBITDA.
At 31 May, the company’s cash position had increased to €300 million, versus €214.3 million in the comparable pre-Covid period. At the end of May, Tendam’s pre-IRFS 16 net debt was down versus the previous two years to €424.5 million, slashing its net debt to EBITDA ratio to 2.6x.
The number of loyalty club members for the various Tendam brands increased by over 9% to total 30.8 million.
Tendam has also continued to make great strides in its sustainability strategy. It has now brought forward its medium-term targets and is aiming for 45% of its products to be more sustainable by year-end. The company has removed more than 90% of B2C plastic from its retail operations.
“The overarching goal of Tendam’s strategy is to ensure sustainable and profitable growth by consistently building market share,” added Tendam President and CEO Jaume Miquel.
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