Tendam boosts sales by 6.5% in 2023, reaching €1.288 billion

Tendam Brands, which encompasses labels including Women’secret, Springfield, Cortefiel, Pedro del Hierro, and Hoss Intropia, among others, saw total sales rise by 6.5% in its fiscal year 2023, which concluded on February 29, amounting to €1.288 billion, according to the group’s announcement on Thursday.

Like-for-like sales grew by 6.9% in 2023 compared to the previous year, while the digital business saw an even more substantial increase of 8.9%, resulting in digital revenues of €187.7 million.

Furthermore, Tendam’s newly introduced proprietary brands, alongside third-party brands, generated €79 million, accounting for 27% of the group’s overall revenue growth.

Concurrently, Tendam has continued to strengthen its market presence in Spain across its key segments—men’s and women’s outerwear and intimate apparel. The market share in these segments has grown from 6.1% in 2019 to 7.1% in 2023.

In terms of geographical performance, the group experienced sales growth in all regions where it operates during 2023 compared to the previous year, with Mexico showing a remarkable 23.9% growth, underscoring its high growth potential. Spain and Portugal also demonstrated strong performances, with increases of 6.2% and 7%, respectively, compared to 2022, highlighting “significant opportunities” in these markets.

Growth in the first quarter of 2024

The company also released preliminary financial information for the first quarter of the current fiscal year, ending May 31, 2024. During this period, the group reported a 6% increase in like-for-like sales compared to the same period in 2023, with online revenue growing by an impressive 15.1%.

In this context, Tendam estimates that its recurring EBITDA and pre-IFRS16 recurring EBITDA grew between 8.5% and 10.4%, and between 18.9% and 23.5%, respectively, compared to the first quarter of 2023.

“The results for fiscal 2023, along with our forecasts for 2024 and our ongoing strategic development, combined with robust corporate governance practices and rigorous financial discipline, reaffirm the strength and consolidation of Tendam’s business model,” the group stated.

Regarding a potential stock market listing, Tendam indicated that it continues to evaluate strategic alternatives, including the possibility of an initial public offering on a regulated market.

For 2024, Tendam plans to continue advancing its strategic initiatives. This includes enhancing its digital and omnichannel capabilities, strengthening its own brands, incorporating new third-party brands, boosting its loyalty programs, and expanding further into the Mexican market.

Tendam is optimistic that total revenue and like-for-like sales will increase by 5% to 6% in 2024, with online revenue projected to grow annually by 9% to 11% in the medium term.

Additionally, the company expects its recurring EBITDA margin to improve progressively by 0.8 to 1.2 percentage points compared to 2023. This improvement will be driven by a greater emphasis on online business, resilient gross margin capabilities, improved profitability of its own stores, and significant growth in like-for-like sales.

Tendam’s chairman and CEO, Jaume Miquel, remarked that the current fiscal year 2024 has started on a “very positive” note. He expressed satisfaction with the “excellent” business performance so far. “We remain enthusiastic about the growth opportunities ahead and are confident that 2024 will be another year of significant progress for Tendam,” Miquel concluded