With positive sales across all channels, the company’s results confirm the excellent operational performance of its efficient omni-channel ecosystem. Tendam posted record 9M sales in 2022.
Strategic growth initiatives – new brands and multi-brand platform – accounted for 26.4% of Tendam’s net revenue growth
During the reporting period, the Group paid down gross debt by 19.3%, contributing €103.3 million from its own cash reserves, securing a green loan worth €130.9 million and issuing €300 million in bonds
The number of loyalty club members increased by 8.5% to more than 32 million
Tendam made strong strides in its sustainability programme earning an A rating from the Carbon Disclosure Project (CDP), increased the weight of sustainable products in the company’s collections to 45% and reached gender parity on the Board of Directors
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 30 November 2022, corresponding to the first nine months of the company’s 2022-23 financial year.
Tendam President and CEO Jaume Miquel said: “Tendam has become an open omni-channel ecosystem which is unrivalled in the market, with ten own brands, 32 million loyalty club members and over 125 third-party brands, all available in digital format. This is the ideal starting point to deliver further strong, long-term growth.”
Tendam’s total revenues increased by 8.6% to €840.7 million in the first nine months of the year. Like-for-like sales were up by almost 10% versus 2021 and 9.1% versus 2019. Tendam posted its best financial results in its history in 9M 2022. Despite it being a challenging period due to adverse economic and weather conditions, the company’s total sales in the third quarter stood at €263.2 million, up 1.7% and 2.7% compared to the same period in 2021 and 2019, respectively.
At 30 November 2022, Tendam’s digital sales accounted for 18% of the company’s total sales. In the first nine months of the reporting period, the digital business grew by 15.4% versus 2021 and 126.3% versus 2019.
The new growth initiatives under the Tendam 5.0 umbrella strategy accounted for 4.5% of the company’s total sales between March and November, delivering 26.4% of the Group’s net growth.
Tendam’s own brands continued to put in an outstanding performance, with increased like-for-like sales versus 2021 and 2019 across the board.
The company’s results confirm the excellent operational performance of its unique omni-channel ecosystem, under which brick-and-mortar stores serving as logistics and sales hubs are seamlessly connected to the digital business. The model successfully delivers 21.9% of digital sales through the network of brick-and-mortar stores, which also ship 14.4% of online purchases. The network of stores, which is distributed throughout Spain and is an important source of growth and local employment, accounts for 50% of online order collections and handles around 75% of returns.
Gross margin remained above 63% for the first nine months.
Adjusted EBITDA stood at €192.5 million in 9M 2022, down 1.2% versus 2021. On a like for like (pre-IFRS 16) basis, adjusted EBITDA was €101.4 million, above 2019 levels, cementing the company’s recovery and outperforming pre-pandemic levels.
At the end of the nine months, Tendam’s net debt amounted to €408 million, and its net debt to EBITDA ratio improved to 2.69x. In October, the Group paid down gross debt by 19.3%, contributing €103.3 million from its own cash reserves, securing a green loan worth €130.9 million and issuing €300 million in bonds.
Loyalty club membership continues to enjoy sustained growth with 2.5 million new members over the last 12 months, taking the total to 32 million. The success of Club Hoss and Club Fifty was particularly noteworthy, with significant increases in the number of members. Loyalty club members accounted for 62.3% and 68.6% of these brands’ sales respectively over the 9M period. The number of club members who shopped at Tendam via multiple channels (physical stores and online) as of November 2022 increased to 15.2%, reflecting clear progress for the loyalty clubs’ multi-channel strategy.
Tendam President and CEO Jaume Miquel said: “The outlook for the fourth quarter of our financial year is very positive with double-digit like-for-like sales growth across all channels.”
Regarding sustainability, Tendam’s climate strategy has been recognised by the Carbon Disclosure Project Climate (CDP), which upgraded its rating to an A. The company’s first green loan, signed in October, is tied to lowering greenhouse gas emissions and increasing the weight of sustainable products in its collections. The company expects the proportion of products with sustainable content to reach its target of 45% by the end of the year.
In terms of diversity, Tendam’s Board of Directors achieved gender parity.