Tom Tailor improves profitability in 2025 and extends financing

Tom Tailor improved its profitability and extended its financing in the 2025 financial year. The Hamburg-based clothing company achieved a turnover of 582 million euros in the period, just below the previous year's result, according to a statement released on Thursday. In 2024, the company generated revenue of 588 million euros.

Adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) improved by 38 percent year-over-year to 52.2 million euros in 2025. The gross profit margin improved from 56 to 58.2 percent. These positive developments are primarily due to improved merchandise purchasing management and consistent cost management, according to the statement. Direct sales performed at the previous year's level, as they did in 2024. The company's own stores achieved like-for-like growth of 3 percent. This was mainly possible due to the strong performance in Austria and Southeast Europe.

“2025 was another challenging year for our industry. It is therefore all the more important that we have consistently focused on the areas that we can influence ourselves,” said Gernot Lenz, CEO of Tom Tailor. “The development of profitability shows that we have made further progress in the evolution of our business model.”

Financing extended until 2028

In addition, Tom Tailor announced that it was able to complete its refinancing at the end of 2025 and extend the term until the end of 2028, with renewed support from its shareholder Fosun International Ltd. Last month, the state-guaranteed Covid-19 loan of 100 million euros was also repaid as planned.

For 2026, the company continues to expect challenging market conditions. It will continue on its current course, focusing “unchanged on sustainable profitability, operational excellence and the further strengthening of the brand”.

This article was translated to English using an AI tool.

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