Tendam Brands, the parent company of the Tendam Group, operating in the specialised chain store segment through the brands Cortefiel, Pedro del Hierro, Springfield, Women’secret and Fifty, has said that the first quarter reporting period coincided with the peak of the Covid-19 pandemic, with practically all stores fully closed in most of the markets. Physical store closures and restrictions on capacity and movement had a direct impact on total sales, which fell by 76.2 percent to 52.1 million euros (61.2 million dollars). Revenues for the last twelve months were down by 11.1 percent to 1.02 billion euros (1.20 billion dollars).
Commenting on the results, Tendam Chairman and CEO Jaume Miquel said in a statement: “The unprecedented situation in this period has further demonstrated that our digital business is a crucial part of the Tendam ecosystem and strategy. The stronger profitability of the online business will contribute substantially to growing the group’s EBITDA.”
Tendam’s online sales rise by 54 percent in Q1
However, Tendam’s digital sales grew by 54 percent between March and May 2020 and represent 44 percent of total revenues in Spain. Women’secret posted particularly strong growth of 115 percent over the period. The digital business, which the company expects to triple over the next three years, posted a gross margin of 67.1 percent, up by 2.8 percentage points from 64.3 percent in Q1 2019.
Total gross margin for the quarter stood at 66.7 percent, down 1.2 pp due to the increase in online sales. Between March and May 2020, adjusted EBITDA pre-IRFS 16 stood at negative 47 million euros (55.2 million dollars), versus 13.1 million euros in Q1 2019. Accounting for IFRS 16, adjusted EBITDA totalled negative 12.7 million euros (14.9 million dollars) over the period.
Picture credit:Tendam Group