Tendam posts positive development in Q1 sales and profit

Spanish fashion retailer Tendam Brands said that its EBITDA for the first quarter climbed to 51.9 million euros, up 17.7 percent versus the comparable quarter of last year and 16.3 percent versus pre-pandemic figures in 2019.

Tendam's total sales for the period stood at 243.2 million euros, rising by 3.6 percent year on year. Like-for-like sales for the quarter were up 4.1 percent and 11.1 percent versus 2019.

Commenting on the quarterly update, Tendam chairman and CEO Jaume Miquel said: “The first quarter of our 2023 financial year was excellent. All brands, formats and channels put in a strong performance and contributed positively to business profitability. The initiatives rolled out under the Tendam 5.0 strategy outperformed in particular, delivering almost 45 percent of net growth over the quarter and positioning themselves as key growth drivers in a very short space of time.”

Tendam's gross margin expanded to stand at 68.2 percent, rising 2.3 percentage points and outperforming pre-pandemic figures. The company added that new initiatives under the Tendam 5.0 strategy represented 44.6 percent of the net growth posted over the quarter and accounted for 5.1 percent of the group's sales. Online sales through the multi-brand third-party platform were up 75.5 percent, contributing 18.1 percent to Tendam's net quarterly growth.

The digital business posted a 4.1 percent increase in profitability driven by the increase in the number of third-party brands on the multi-brand platform from 90 to 150 over the last 12 months; strong growth in the click-shopping format, which accounted for 31.5 percent of digital sales in versus 24.1 percent in the first quarter of 2022; and the lower impact of logistics costs.

At the end of the first quarter, Tendam's store network totalled 1,804 points of sale. Directly-operated stores continued to drive up footfall consistently and posted like-for-like growth of 4.8 percent. Tendam grew its store network from March to May 2023, with five net openings of directly-operated stores and six new franchises. In the last twelve months, the franchise network launched 47 net openings.

At May 31, 2023, Tendam had a total of 33.3 million loyalty club members, having added 2.5 million partners over the last twelve months, an increase of 8.2 percent.

“Despite the current macroeconomic uncertainty, we maintain our positive outlook and our goal of delivering sustained growth whilst maintaining Tendam's strong levels of profitability. Sales are enjoying robust growth in the second quarter with a consistent improvement in margins, so we expect the results for the first half of the year to be excellent,” added Miquel.