Tendam leaves losses behind in 2017 as it paves the way for an IPO

Tendam leaves the red as it prepares for an IPO. The Spanish fashion group, owner of retail chains Cortefiel, Pedro del Hierro, Springfield and Women’secret, ended fiscal 2017 with a net profit of 98.6 million euros, compared to the 24 million euro loss posted in the previous year.

The company’s turnover rose 2.4% to 1.15 billion euros during last fiscal year (ended on February 28, 2018). Like-for-like sales increased at a faster pace, up 4.8%, while ecommerce grew 26%, with a higher profitability than brick-and-mortar stores. At the end of 2017, online sales represented 6% of Tendam’s total turnover.

Recurrent ebitda soared 48% to 170 million euros, while gross margin improved by 3.5 percentage points to 61,2% of sales. Tendam’s net debt amounted to 514.5 million euros at the end of fiscal 2017.

Tendam’s debt was down to 514.5 million euros and its gross margin reached 61.2%

The group has begun to collect the results of a reorganization process that started two years ago with the appointment of Jaume Miquel as chief executive officer. On the horizon, Tendam (formerly Grupo Cortefiel) is preparing to be listed again on the stock market in 2019, a move for which it decided to change its visual identity and rename as Tendam.

“Fiscal 2017-2018 has been the first full year that reflects the consequences of the strategic plan applied by Tendam, fulfilling our commitments”, said Miquel in a statement. “As a result, all markets, channels and brands have registered positive comps and improved its profitability.”

“Tendam has today a solid financial situation, which combined with the business evolution, enable us to look to the future with confidence and growth perspectives”, added Miquel.

As of February 28, 2018, Tendam operated with 1,988 points of sale in nearly 90 countries (compared to 1,982 last year), of which 1,180 are own-operated stores, 692 franchises and 116 shop-in-shops. During last year, the group has started operations in Norway, Cuba, India, Mauritius and Reunion Island, while it has opened new stores in Qatar, Eslovenia, France, India, Ireland, Italy, Lebanon and Russia, among others.  

Tendam is owned by CVC and Pai Partners since last summer, when both funds acquired Permira’s stake in the company. The deal included a capital injection that reduced by 40% the groups’ debt.