Spanish fashion retailer Tendam has achieved a 3.2% increase in total sales, totaling €1.19 billion ($1.33 billion) for the year ending on February 29, 2020. The growth of the company was primarily fueled by a strong trading performance and a robust fourth quarter, with sales increasing by 6.4% in the final quarter and 5% on a like-for-like basis. Tendam, the owner of popular brands Cortefiel and Springfield, also experienced a significant boost in online sales, which saw a rise of 28% throughout the year and an impressive 30.5% increase in the fourth quarter. E-commerce now constitutes nearly 10% of Tendam’s total sales in Spain.
To further solidify its online retail presence, Tendam plans to expand its loyalty programs, which have grown by 9% and now encompass over 26 million members in Spain. The company aims to triple the size of its online business within the next three years, a target that is closely aligned with the growth of its loyalty programs. Tendam attributes its successful online presence to a combination of factors, including its strong brand portfolio, effective member management, continuous digital investment, and a customer-centric approach.
Tendam has demonstrated an increase in its gross margin, which reached a commendable 62%. Additionally, its adjusted EBITDA pre-IFRS 16 stood at €162 million ($181 million), showing a slight rise compared to the previous year. Taking into account IFRS 16, adjusted EBITDA was €297 million ($332 million). The company has positioned itself in a strong financial state leading up to the coronavirus crisis, with improved free cash flow and reduced net debt.
Despite its positive performance, Tendam acknowledges the challenges caused by the coronavirus pandemic. The company anticipates difficult market conditions until 2022 and estimates that sales for the current year could face a decline ranging from 25% to 35%. Nevertheless, Tendam remains confident in its ability to emerge as a leader in the fashion sector in the future, driven by key trends such as the growth of online business, responsible consumerism, the integration of sustainability, timeless fashion with added value, and companies making contributions towards a better society.