Tendam, the Spanish retail conglomerate renowned for brands such as Cortefiel, Springfield, and Women’secret, achieved a 4.6% revenue growth in the first quarter of its fiscal year, totalling €253.8 million. The group projects an optimistic revenue increase ranging from 8% to 8.3% for the second quarter of the fiscal year, which concludes at the end of August.

In the fiscal year ending May 31, 2024, Tendam reported a 6% year-over-year increase in like-for-like sales, while its recurring EBITDA reached €57.1 million, marking a 10% growth. “Pre-IFRS 16 recurring EBITDA grew by 21.6% compared to the first quarter of the previous fiscal year,” the company noted.

The parent company of Pedro del Hierro also anticipates continued revenue growth between 8% and 8.3% (or between 8% and 8.2% on a like-for-like basis) for the period from June to August compared to the same timeframe in 2023. These expectations for the fiscal period nearing its end forecast an increase in recurring EBITDA ranging from 5.6% to 5.9%.

This optimistic outlook is anchored in the financial achievements recorded during June and July, the first two months of the second quarter, during which Tendam observed a 7.9% increase in sales. This robust performance propelled the cumulative revenue from March to July to €550.2 million, marking a substantial rise from €517.2 million during the corresponding period in 2023 and registering a noteworthy year-to-date growth of 6.4%.

“The gross margin accumulated between March and July reached 64.3%, marking a slight increase of 0.3 basis points over the previous year’s comparable period. This confirms the success of a dynamic ‘Hi-Low’ pricing strategy, which has allowed the first quarter margin gains to accelerate sales in the second quarter while also protecting the accumulated gross margin level through the end of the July period,” detailed the company. Moreover, it was noted that recurring EBITDA saw a rise of 7.3% during the June-July period and an overall increase of 8.5% throughout the March-July period.

Tendam has disclosed its results for the first five months of the year along with its projections for the end of the first semester, anticipating a revenue increase of between 6.7% and 6.9%. This forecast comes amid rumors of an impending IPO planned for the post-summer period.

Furthermore, the group spotlighted the robust performance within the Mexican market, which registered an 18.6% surge in revenues compared to the same period in 2023. Similarly, notable increments were observed in Spain and Portugal, where revenues escalated by 5.5% and 7%, respectively, within this period.

The online sector of Tendam grew by 13% in the first five months of the fiscal year, thereby contributing €77.7 million to the group’s financial influx.

“After 14 consecutive quarters of consistent growth in comparable revenues, we are confident that we have built a distinctive and winning business model with high operational and financial resilience, generating profitable growth sustainably. The favorable business trajectory since the start of fiscal 2024 coupled with the forecasts for the end of the semester affirm this positive outlook,” said Jaume Miquel, chairman of the board and CEO of Tendam, in a press release.

“We are very pleased with the company’s ability to consistently deliver positive results and remain excited about the potential growth opportunities ahead,” he added.

The fashion conglomerate, formerly known as Grupo Cortefiel, includes brands such as Women’secret, Springfield, Cortefiel, Pedro del Hierro, Hoss Intropia, Slowlove, High Spirits, Dash and Stars, OOTO, Milano, Fifty, and Hi&Bye in its portfolio. The latter was launched at the beginning of 2023 targeting Generation Z. In its entirety for fiscal year 2023, the company marked a 6.5% increase in sales, culminating in a revenue of €1.288 billion.