Cortefiel posts 4% uptick in sales in first nine months

Cortefiel has reason to celebrate, unveiling its third quarter results this week. The firm reported an increase in total sales, strong e-commerce revenues and an uptick in operating profit, as well as a decline in debt.


A Cortefiel store - Cortefiel

During the nine months from March 1 to November 30, the Spanish group’s revenues increased by 4% to 810 million euros ($1.003 billion).

Group online sales were up 33.4%, with all brands enjoying growth of at least 30%, said the brand, which ends the financial year on 28 February.

The company, owner of Springfield and Women’secret, saw online sales grow by more than 40% in the third quarter.

And gross operating profit surged by 81.7% to 110.9 million euros ($137.5 million), compared to just 61 million euros in the first nine months of the prior year.

The increase in EBITDA was a result of increased sales combined with an improvement in gross margin by three percentage points. Underlying EBITDA was 164.5 million euros ($203 million), representing a 60% increase compared with the 102.5 million euros recorded in the prior year’s period.

Net debt was reduced to 555.9 million euros ($694 million) at the end of the nine months. Jaume Miquel, CEO of Cortefiel, said the improved performance was a result of the company’s new strategy, launched in September 2016. The plan focuses on strengthening the brands, reviewing the store portfolio, accelerating the expansion strategy, control stock levels and improving margins, as well as reducing operative expenses, according to Miquel.

Beyond the financial numbers, Cortefiel said its loyalty programs have continued to grow and now boast of 21.6 million members across all brands.

These initiatives are key for the group, as sales linked to loyalty programs increased by 6% compared to the first nine months of 2016/17.

As of November 30, Cortefiel has more than 1,971 stores in over 80 countries, including 1,971 directly-operated stores, 678 franchises and 112 concessions. During the period, the group opened new stores in Spain, Portugal, Russia, Ireland, Slovenia, Lebanon, Qatar and the Dominican Republic, among others.

Founded in Madrid in 1880, the group is made up of five fashion chains: Cortefiel, Pedro del Hierro, Springfield, Women'secret and Fifty Factory outlet stores.

Translated by Barbara Santamaria

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