Takko Fashion reports sales growth and improved profitability

Takko Fashion posted strong revenue growth in the second quarter translating into 3 percent adjusted EBITDA growth versus pre pandemic levels.

During the quarter under review, the company generated net revenues of 344 million euros, a 12 percent revenue growth compared to pre-pandemic levels.

The company said in a release that with an adjusted EBITDA of 59.1 million euros and a corresponding adjusted EBITDA margin of 17 percent, profitability remains high.

Commenting on the second quarter trading, Tjeerd Jegen, CEO of Takko Fashion, said: “Against the backdrop of inflation and the challenging market environment, we are confident that we can address the growing demand for fashionable and affordable clothing across all demographics with our quality fashion at discount prices.”

The company added that sales and gross profit growth was driven by rising customer frequency combined with a higher conversion rate due to a positive customer reaction to Takko Fashion’s spring/summer ranges.

“While the first quarter was impacted by the war in Ukraine and certain macroeconomic factors, resulting in a more hesitant consumer spending, our business recovered noticeably throughout the second quarter. Despite the continued challenging market environment, we managed to grow our revenues and improved our adjusted EBITDA compared to pre-pandemic levels,” added Kurt Rosen, CFO of Takko Fashion.

Takko Fashion continues to show positive liquidity with a cash on balance sheet position of 132.2 million euros, compared to 43.4 million euros at the same pre-pandemic period.