- Prachi Singh
Tendam Brands, the parent company of the Tendam Group, posted a return to profit in the second quarter reaching adjusted EBITDA of 31 million euros and EBT (earnings before taxes) of 8.7 million euros. The company said in a statement that Tendam’s total revenues reached 260.3 million euros, down 23.6 percent, buoyed by the gradual reopening of brick-and-mortar stores and by the robust growth in online sales and an increased conversion rate.
Commenting on the trading performance, Tendam Chairman and CEO Jaume Miquel said: “We are particularly pleased with the company’s performance from June through August. The return to positive EBITDA and EBT, strong cash generation and a significant reduction in stock is the outcome of Tendam’s strong operating model and ecosystem, in which the customer, the digital business, and our flexible network of physical stores are all inter-connected.”
The company’s online sales increased by 40.5 percent, representing 15.3 percent of the group’s total Q2 sales in Spain, a figure the company hopes to maintain or even continue growing through the end of the year. The strong profitability of Tendam’s digital channel resulted in an increase in gross margin of 3.5 percentage points reaching 57.6 percent, compared to 54.1 percent in the second quarter of last year.
Tendam recently announced that it is including leading brands on its e-commerce platform, building on its digital multi-brand store strategy. Currently, the online range features Levi Strauss & Co. and Bestseller as well as other independent brands. The company will also launch its first collection of the Hoss Intropia brand, acquired in 2019, in the upcoming spring-summer season.