Tendam boosts its profit by 28% in the first half

Tendam's half-year results

Tendam, the Spanish group that owns chains such as Cortefiel, Springfield, Women'secret and Pedro del Hierro, has closed the first six months of the year with net sales of 744.9 million euros, a growth of 10.7% compared with the same period of the previous financial year. Net profit stood at 59.3 million euros, 28% more than in the first half of last year. These figures reflect a solid recovery in fashion consumption in Spain and an improvement in the group's operating efficiency.

Growth is not explained by inflation alone: the increase in profit above that of sales indicates that the company has managed to improve its margins, probably thanks to tighter inventory management, a reduction in discounts and a greater weight of the online channel. In addition, the diversification of its brand portfolio, which ranges from womenswear to menswear, childrenswear and lingerie, allows it to capture different consumer segments and reduce the risk of depending on a single banner.

For the footwear sector, these results are a relevant signal. Tendam is a key player in fashion retail in Spain and, although it is not a footwear specialist, its chains sell shoes as a complement to their collections. A higher volume of fashion sales drives demand for footwear, especially in the fast and affordable fashion segment. Footwear suppliers working with this type of chain may see their orders increase if the trend continues in the second half of the year.

What it means for a footwear store

For an independent footwear store, Tendam's good results are not a direct threat, but they are an indicator that Spanish consumers are willing to spend on fashion. This can translate into greater footfall in commercial areas and urban centres where shoe shops also operate. If consumption remains strong, stores can plan their seasonal purchases with more confidence, especially in fashion items and accessories that compete in the same space as Tendam's chains.

However, it is best not to get complacent. Tendam's growth is taking place in a context of fierce competition from online giants such as Shein or Temu, which put pressure on prices in the young fashion segment. Footwear stores must differentiate themselves with higher-quality product, own brands or personalised service that the chains cannot match. The key is not to compete on pure price, but on added value.

What it means for a footwear wholesaler

For a wholesaler, the reading is more direct. If fashion chains such as Tendam's sell more, they will need more complementary product, including footwear. Wholesalers already working with these groups can expect more voluminous orders or more frequent replenishments. But it is also true that these chains tend to impose tough conditions: long payment terms, stock requirements and pressure on margins.

The wholesaler must assess whether depending on large accounts pays off or whether, on the contrary, it is better to diversify towards multi-brand stores and small retailers, which although they buy less volume, offer more flexible conditions and lower risk of non-payment. The good news is that the market is active: when fashion consumption grows, footwear benefits as a complementary category.

Context of the Spanish market

The Spanish fashion and footwear market has shown signs of recovery after a 2023 marked by inflation and falling purchasing power. Tendam's results add to those of other companies in the sector that have also reported improvements in their accounts. This suggests that Spanish consumers have recovered part of their spending capacity, although they remain selective and price-sensitive.

For wholesale footwear, the challenge lies in adapting to a consumer who wants constant novelty but is not willing to pay high prices. Capsule collections, more frequent deliveries and the ability to react quickly to trends become competitive advantages. Wholesalers that can offer short delivery times and smaller batches will have an advantage over those that remain anchored to high minimum orders.

Conclusion

Tendam's results confirm that the fashion sector in Spain is on a positive path. For footwear, this is an opportunity to grow in orders and strengthen the relationship with fashion chains. But it is also a reminder that the market demands agility, efficiency and adaptability. Both stores and wholesalers should read these figures as a stimulus to fine-tune their commercial strategies and not as a guarantee that everything will run smoothly.

Tendam's profit growing faster than sales shows that in fashion it is not enough to sell more: you have to sell better.

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