Spanish fashion group Tendam faced a significant decline in revenues during the third quarter of 2020, largely due to the ongoing impact of the Covid-19 pandemic. The company reported a 23.1% decrease in sales, amounting to 197.2 million euros. On a comparable basis, sales dropped by 16.7%. Tendam, the owner of renowned brands such as Cortefiel, Pedro del Hierro, Springfield, Hoss Intropia, and Fifty, pinpointed lockdowns, restrictions, and capacity limits as the primary factors affecting its physical store revenues. However, the company experienced a substantial increase in online sales, with a growth rate of 79% compared to the same period last year. Notably, online sales accounted for 20% of Tendam’s national revenues.

Jaume Miquel, the Chairman and CEO of Tendam, expressed the company’s belief in the future of digital retail. Nevertheless, Miquel emphasized the importance of merging the digital and physical store experiences. Tendam understands the value of connecting with customers through both channels.

Despite the unprecedented challenges posed by the pandemic, Tendam managed to maintain a positive EBITDA for the second consecutive quarter. It reported an EBITDA of 35.6 million euros (3.5 million before the application of regulation NIIF16) in the third quarter. The company achieved this by implementing various measures, including stock reductions (-15.4%), cost reductions (-14.2%), and targeted investments in their digital strategy. Additionally, Tendam improved its free cash flow by 30.8 million euros.

As of November 30, 2020, Tendam’s net debt decreased to 494.2 million euros from 524 million euros in August of the same year. This signifies the company’s commitment to financial stability and effective debt management.

Tendam operates six brands across 70 countries and has a significant presence in 1,900 points of sale. This includes company-owned stores, e-commerce platforms, and franchise locations. In line with its digital strategy, Tendam introduced a new multibrand omnichannel platform in September 2020, enabling customers to access products from third-party brands.

The challenging market conditions brought about by the pandemic did not deter Tendam from prioritizing customer service, loyalty programs, and a flexible network of physical stores. These strategies have contributed to their resilience and successful operating capacity.

Useful Links:
1. https://www.tendambrands.com/ – Tendam’s official website providing information about the company and its brands.
2. https://www.tendamannualreports.com/ – Tendam’s annual reports, offering insights into the company’s financial performance and strategies.