Tendam returns to profitability in the first nine months of 2018/19

European fashion retailer Tendam, having Cortefiel, Pedro del Hierro, Springfield, Women’secret and Fifty brands under its fold, has said, during the nine-month period, the company’s pre-tax profit reached 43.4 million euros (49.5 million dollars) against losses of 13 million euros between March and November 2017.

Commenting on the company’s performance, Tendam CEO Jaume Miquel stated in a statement: “The company has performed well, in line with expectations for the third quarter, amidst an adverse environment, especially during the first six months of the financial year.”

Highlights of Tendam’s Q3 and nine month results

During the third quarter of the 2018/19 financial year, sales reached 247.3 million euros (282.4 million dollars), up 2.1 percent on like-for-like basis. Total sales for the first nine months of Tendam’s financial year amounted to 801.7 million euros (915.6 million dollars), down 1.1 percent on the figure posted for the same period last year. The company said, the first six months were affected by the streamlining of the physical store portfolio in spring/summer 2017, weather conditions and adverse FX effects, whereas the third quarter saw growth in sales, a significant strengthening of gross margins and a 41.8 percent improvement in EBITDA.

Tendam’s online sales rose 26.7 percent across all brands between March and November 2018. At November 30, 2018, the online channel accounted for 7.8 percent of total sales in the Iberian region and boast one of the lowest product return rates in the market. EBITDA reached 104.1 million euros, a rise of 2.6 percent versus the same period during the 2017/18 financial year, while gross margins improved by 0.8 percent in the third quarter and 0.3 percent over the entire nine-month period to reach 63.5 percent.

As of November 30, 2018, Tendam’s store network comprised 2,042 total points of sale, an increase of 71 on November 2017, of which 1,231 are directly-operated stores, 690 franchise operations and 121 department store corners. The company is present in 91 countries.

Picture:Facebook/Cortefiel