Tendam, owner of Cortefiel, plans its IPO

Taken alone, Tendam is a difficult term to understand.

Oliver Thansan
Oliver Thansan
30 March 2024 Saturday 04:26
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Tendam, owner of Cortefiel, plans its IPO

Taken alone, Tendam is a difficult term to understand. However, if we specify that it is the business umbrella that groups brands such as Cortefiel, Pedro del Hierro, Springfield, Fifty or Women'Secret, the image is much clearer. Not in vain, the century-old company has 1,866 points of sale through its own stores and franchises in 78 countries.

The textile company will star, if all the omens are confirmed, in one of the most promising IPOs of the year, along with the possible market debuts of Puig, Astara, Hotelbeds, Volotea or Europastry. These operations are usually one of the natural exits of venture capital funds from the shareholders of companies, but the case of Tendam is special. The owners CVC and Pai have been in the textile company for almost two decades, when they delisted it. This property was shared with a third fund, Permira, until 2017, when the first two took over their share.

And there the dance began. Up to three times (2018, 2019 and 2022) there has been talk in circles about placement banks and stock market valuations. However, this is the first time the company has explicitly admitted that it could be a real possibility. “Tendam and its shareholders are evaluating possible strategic alternatives to take the company to its next phase of growth, including the possibility of a public offering of its shares in a regulated market,” commented Jaume Miquel, president and CEO of Tendam, in the last presentation of results.

With this objective, the brand would have selected BNP Paribas, Citigroup and JPMorgan to manage the operation, according to Reuters in December. Rothschild

The textile company that reaches the doors of the market is not the same as six years ago, when it tried for the first time. The company has achieved a turnover in the first nine months of the 2023/2024 financial year, until December, of 884 million, 5.2% more than the previous year. The recurring result before taxes (ebitda) accumulated in the year stands at 210.7 million, 9.4% more. And the forecasts are to close with an increase in EBITDA of 10% compared to the previous forecast of a growth of 5%. Tendam's objective is to grow "between 6% and 8%" annually "in a sustained and profitable manner."

To achieve this, the textile company has strongly opted for a multi-brand strategy and a differentiated type of audience and store. In five years, it has doubled the number of its own brands. To those mentioned, Hoss Intropia, Slow Love, High Spirits, Dash and Stars and OOTO have been added. In addition, they manage the sale and distribution of up to 150 third-party brands such as Levi's, UGG, Jack

This multi-brand phenomenon arose after the pandemic, when the group strengthened its omnichannel digital strategy and opened its network to other third-party brands. This omnichannel implies that a user can buy a garment from any brand in the group both in store and online and receive it at home, in a store of that brand or another of the company's stores, and make the return in any of these ways.

This flexibility also permeates the stores, which can house a single brand or several, their own and those of third parties, depending on the location and available space. The capillarity of the network is key for the group, which prefers, in the words of its advisor, more smaller and closer stores than large stores.

Another aspect that defines the group is that it considers that proximity to the public is important because their loyalty represents another of the company's historical strengths. Its loyalty clubs have nearly 40 million members. They represent around 75% of sales, with average tickets of 50 euros growing. A pillar that can provide security in the face of a new stage in the markets if, as planned, it ends up happening.