The department store group has reduced its debt by 253 million euros (278.8 million dollars) in the first half of the year.
El Corte Inglés, on the rise. The department store company has ended the first six months of the fiscal year (between March and August) with an increase of 14% of its gross operating result (ebitda), up to 386 million euros.
The group has explained in a statement that its result has been enhanced by the improvement in business management. In the company as a whole, the gross margin has increased by ten percentage points, 1.2% more.
In the first half, El Corte Inglés had a revenue of 7.6 billion euros (8.4 billion dollars), up 1.3% from the same period of the previous year. By divisions, the company’s retail sales have risen 1%, to 6 billion euros. The company explained that the fashion sales were driven by the good performance of the footwear and accessories division in the period. In addition, the group has indicated that it continues with the process of reordering its own brands.
El Corte Inglés has raised only 1% the revenue of its retail division
El Corte Inglés plans to strengthen the distribution of its private label Woman and renew brands like Southern Cotton and Tintoretto. The department stores group prepares for 2020 the launch of private labels Another Love and Alik.
The online channel has also been another growth vector for El Corte Inglés in the first six months of the year. Although it does not detail its revenue, the company has indicated that the online channel has registered double-digit growth between March and August. In addition, the group has explained that it plans to launch an app for next year.
The company will launch two new brands in 2020: Another Love and Alik
On the other hand, the group led by Marta Álvarez since last June, has reduced its debt in the first six months of the year. Between March and August, El Corte Inglés financial debt stood at 3.1 billion euros (3.4 billion dollars), 253 million euros (278.8 million dollars) less than the same period a year ago.
“This positive evolution is due to the behavior of the business and the divestitures made in non-strategic assets worth 193 million euros (212.7 million dollars),” explained El Corte Inglés in a statement. During the period, the company has created a new business unit, El Corte Inglés Real Estate, with the goal of maximizing the value of its real estate assets and focusing on the development and management of its asset portfolio.