Tendam Brands, the parent company of well-known fashion brands such as Cortefiel, Pedro del Hierro, and Springfield, has announced impressive financial results for the first quarter of the fiscal year 2023. The company experienced a significant growth of 17.7% in its gross operating profit (Ebitda), reaching an impressive 52 million euros. In addition, Tendam saw a 3.6% increase in sales during this period.

This surge in Ebitda marks a significant improvement from the same quarter of the previous year. Even more impressive is the 16.3% increase compared to pre-pandemic levels in 2019.

The total sales of the group reached 243.2 million euros, representing a 3.6% rise. Comparable sales increased by 4.1% compared to the same period in 2022, and there was a notable 11.1% surge compared to 2019.

Despite the challenging consumer conditions caused by rising interest rates, Tendam managed to maintain a strong commercial proposition and considerably improve its profit margins. The company’s gross margin saw a significant improvement during the first quarter, reaching 68.2%, an increase of 2.3 percentage points compared to the same period last year and surpassing pre-pandemic levels.

Tendam attributes this success to its strategic initiatives and the positioning of its brands in the ‘premium mass market’ segment. The company’s efficient management of operations, combined with decreasing inflationary pressures and international transportation costs, contributed to the growth of the gross margin, which outperforms the industry average.

One of Tendam’s strategic initiatives, Tendam 5.0, played a significant role in its success. Tendam 5.0 operates as a unique open ecosystem that leverages the traffic of nearly 400 million customers, 11 proprietary brands, over 150 third-party brands, and the full integration of digital and physical businesses, including logistics and sales. The new initiatives under this strategy accounted for 44.6% of the net growth registered in the quarter, contributing to 5.1% of the group’s sales.

Tendam’s digital business also continued to thrive, with a 4.1% increase in profitability. The addition of more third-party brands on the multi-brand platform and the growth of the ‘click-shopping’ format contributed to this success. Logistic costs have also reduced, thanks to a low and stable return rate.

In terms of store operations, Tendam currently operates 1,804 stores and experienced a 4.8% growth in sales on a comparable basis. The company also expanded its network with new store openings and franchised store openings. The franchise network added 47 net new openings in the past twelve months.

The CEO of Tendam, Jaume Miquel, expressed satisfaction with the group’s results, stating that despite uncertainties in the macro scenario, they maintain a positive outlook and aim for sustained growth while preserving profitability. Miquel also expects accelerated sales growth and improved margins in the second quarter, closing the first half of the year on a positive note.

Tendam also highlighted the continued growth of its loyalty club memberships and associated sales. As of May 31, the company had 33.3 million members in its loyalty clubs, with 2.5 million new members in the past 12 months.

On the sustainability front, Tendam has made significant progress. As of the first quarter’s closure, 46% of its products have sustainability content, and emissions have been reduced by 16% compared to the 2019 baseline, despite the impact of the energy crisis and the war in Ukraine.

Overall, Tendam Brands has demonstrated resilience and success in the first quarter of fiscal year 2023, showcasing its ability to adapt to challenging market conditions and deliver strong financial results.

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