Tendam Brands , the parent company of Grupo Tendam , which includes the trademarks Cortefiel, Pedro del Hierro, Springfield, Women’secret and Fifty, has announced its results for the period between March 1 and May 31, 2020 , which corresponds to the first quarter of your fiscal year 2020/21.
The reported period coincides with the peak of the Covid-19 pandemic in which most of the countries in which Tendam operates kept stores practically closed. Said closure of physical stores and restrictions on capacity and movements had a direct impact on total sales, which fell by 76.2% to 52.1 million euros. Revenues fell 11.1% (1,020.5 million euros versus 1,148.4 million euros).
The digital sales of Tendam grew 54% between March and May 2020 and accounted for 44% of total revenues in Spain. Women’secret stood out during the period with growth of 115%. The online business, which the company expects to triple in the next three years, registered a gross margin of 67.1% (+2.8 pp, vs. 64.3% in the first quarter of the previous year).
Jaume Miquel, president and CEO of Tendam , states: “The exceptional situation that we have experienced has further valued the importance of our digital business as part of the Tendam ecosystem and its strategy. The intimate connection of our loyalty clubs with a fully connected digital model to a flexible and capillary network of stores brings us even closer to our goal of multiplying digital sales by three in the next three years . The superior profitability of our online business will contribute significantly to the growth in the Group’s EBITDA ”.
The total gross margin reached 66.7% (-1.2 pp) due to higher online sales. Stocks were reduced at the end of May by -1.1 million euros due to the rapid and efficient management at the beginning of the pandemic that mitigated any risk of excess inventory.
Between March and May 2020, the recurring EBITDA pre IFRS16 stood at -47 million euros (versus 13.1 million euros in the first quarter of 2019). Taking into account the IFRS16 regulations, the recurring EBITDA registered – 12.7 million euros in the period.
After having closed 2019 with the best financial position in the last 15 years, during the first quarter of the current fiscal year Tendam took the necessary measures to protect liquidity and have a greater margin in management against the impact of Covid-19 In the business. Thus, it was able to dispose of its revolving line (189 million euros) and signed a new financing for a total of 132.5 million euros through a loan with endorsement managed by the ICO and participated by a syndicate of Spanish and French banks.
Between March and May 2020, the number of members of Tendam’s loyalty clubs – a key asset for the Group – has increased by 8.8% and now reaches 26.1 million. During the quarter, the company completed the migration from traditional CRM to advanced analytical capabilities, both in equipment and systems.
Between March and May 2020, the number of members of Tendam’s loyalty clubs – a key asset for the Group – has increased by 8.8% and now reaches 26.1 million
With regard to social impact, the Group has approached crisis management from two pillars: protecting its workers and actively contributing to society. Thus, Tendam complemented the salary of its employees in ERTE 100% during the months of the State of Alarm and offered them microcredits at zero interest, a measure from which more than 2,000 employees benefited.
The company put all its logistical capacity at the disposal of the health authorities, geriatrics and hospital centers, managing the purchase of more than 1 million euros in medical supplies (part with 100% Tendam investment and part on behalf of other companies such as Openbank and CLH) . In addition, through the initiative # TodosSumamos-The thread that unites us the Group has donated more than 50,000 garments to hospitalized patients and health professionals. These donations, along with other initiatives, exceed one million euros in product.
Jaume Miquel , president and CEO of Tendam , comments: “Protecting our employees and customers, protecting the company’s liquidity, efficiently managing the stock, accelerating future strategic projects and actively collaborating with society have been our goal. of performance during this quarter ”.
“We face this unprecedented crisis with a solid financial position , a situation that has been essential to give determined support to the entire team. I am especially grateful for the solidarity contribution of all our collaborators and their work so that every day our clients receive the best service in a safe environment and acting in solidarity ” , he concludes.