Spanish fashion retailer Tendam's core earnings up 10% as it mulls IPO
Adds comments from source familiar with IPO plans in paragraphs 2 and 7
MADRID, June 6 (Reuters) -Spanish fashion retailer Tendam reported on Thursday a 10% rise in core earnings for its 2023 financial year and forecast lower to steady first-quarter growth as the company mulls an initial public offering.
The owner of the Women's Secret, Cortefiel and Springfield chains is ready to launch an IPO on the Spanish stock exchange as soon as before the summer, which starts at the end of June, according to a person familiar with the plans who said offerings in other markets were not being considered.
CEO Jaume Miquel told Reuters last month that the company planned to launch an IPO during its current financial year, which ends in February 2025, following beauty group Puig's market debut in May, Spain's largest IPO in almost a decade.
Tendam said on Thursday recurring earnings before interest, taxes, depreciation and amortisation (EBITDA) reached 313.3 million euros ($340.8 million) between March 2023 and February 2024.
"With a view to stepping up this growth, the company continues evaluating potential strategic alternatives, including the possibility of an initial public offering of its shares on a regulated market," Tendam said in a statement.
Spain's third-largest fashion group after Zara owner Inditex and Mango said its revenue rose 6.5% to 1.29 billion euros, marking a slowdown from 2022, when most fashion retailers were still benefiting from a post-pandemic shopping spree. Spanish stores and online sales accounted for around 70% of sales.
Still, its gross margin rose by 1.2 percentage points to 62.5% in 2023 and the company reported 112.9 million euros of free cash flow during the period, 29.8% more than in 2022. It expects to increase sales by at least 5% this year.
"The natural place for a company with results like this is the public market," the source said, adding that the company had shown its debt was manageable. In March, Tendam paid 110 million euros for all outstanding senior secured notes, four years before maturity.
Tendam said that based on preliminary data in the March to May period, like-for-like revenue grew by 6% from a year ago, while recurring EBITDA rose between 8.5% and 10.4%.
Miquel said "the fiscal year 2024 has started very well", keeping Tendam "excited about the growth opportunities ahead".
Tendam's equity value could reach between 2.2 billion and 2.7 billion euros, according to a research note by Bestinver.
The company, which has been owned by CVC Capital Partners Plc and PAI Partners since 2005, has been expanding as a multi-brand retailer in recent years, with a focus on growth in Spain and Latin American countries such as Mexico, where it can sell its fashion items at higher prices.
($1 = 0.9193 euros)
Reporting by Corina Pons; Editing by Andrei Khalip, Jan Harvey and Emelia Sithole-Matarise
Activos relacionados
Últimas noticias
Descargo de responsabilidades: Cada una de las entidades de XM Group proporciona un servicio de solo ejecución y acceso a nuestra plataforma de trading online, permitiendo a una persona ver o usar el contenido disponible en o a través del sitio web, sin intención de cambiarlo ni ampliarlo. Dicho acceso y uso están sujetos en todo momento a: (i) Términos y Condiciones; (ii) Advertencias de riesgo; y (iii) Descargo completo de responsabilidades. Por lo tanto, dicho contenido se proporciona exclusivamente como información general. En particular, por favor tenga en cuenta que, los contenidos de nuestra plataforma de trading online no son ni solicitud ni una oferta para entrar a realizar transacciones en los mercados financieros. Operar en cualquier mercado financiero implica un nivel de riesgo significativo para su capital.
Todo el material publicado en nuestra plataforma de trading online tiene únicamente fines educativos/informativos y no contiene –y no debe considerarse que contenga– asesoramiento ni recomendaciones financieras, tributarias o de inversión, ni un registro de nuestros precios de trading, ni una oferta ni solicitud de transacción con instrumentos financieros ni promociones financieras no solicitadas.
Cualquier contenido de terceros, así como el contenido preparado por XM, como por ejemplo opiniones, noticias, investigaciones, análisis, precios, otras informaciones o enlaces a sitios de terceros que figuran en este sitio web se proporcionan “tal cual”, como comentarios generales del mercado y no constituyen un asesoramiento en materia de inversión. En la medida en que cualquier contenido se interprete como investigación de inversión, usted debe tener en cuenta y aceptar que dicho contenido no fue concebido ni elaborado de acuerdo con los requisitos legales diseñados para promover la independencia en materia de investigación de inversiones y, por tanto, se considera como una comunicación comercial en virtud de las leyes y regulaciones pertinentes. Por favor, asegúrese de haber leído y comprendido nuestro Aviso sobre investigación de inversión no independiente y advertencia de riesgo en relación con la información anterior, al que se puede acceder aquí.
