In February, Top Secret attracted customers with promotions

February 2019 marked a 17% growth, to PLN 17 m, in Top Secret’s sales versus the corresponding period of 2017. The improvement was achieved thanks to higher share of reduced price goods and deeper promotions. Redan Group, which includes both the results of Top Secret fashion chain and TXM discount company, recorded February turnover of ca. PLN 37 m, which represents a 4% YoY improvement.

“The high sales dynamics in February were influenced by the one-off transaction of wholesale of goods from preceding years. This way, we got rid of difficult stocks, however, at the cost of the margin. Apart from this transaction, the achieved dynamics was at the level of 11%. We are happy with the scale of growth. The achieved trade margin was, however, lower YoY due to the higher share of reduced price goods, deeper promotions, and weakening exchange rate of PLN to USD” – said Bogusz Kruszyński, the President of the Management Board of Redan SA.

In the fashion segment, the total sales in February 2019 was at ca. PLN 17 m and was higher by 17% versus February in the previous year. During that period, the retail space of the brands Top Secret, Troll, and DryWash increased by 2%, and achieved at the end of the previous month 36.8 k sqm. YTD, since the beginning of the year, the sales in the fashion sector was at ca. PLN 34 m and was higher by ca. 16% in the corresponding period of the previous year. Revenue from the sale of merchandise through Top Secret online stores in Poland and Ukraine in February 2019 totalled PLN 3.1m, having grown by 22% over February 2018. In January–February 2019, revenue generated by those Top Secret online stores was PLN 6.0m and was higher by 7% than in the same period of the previous year.

In the TXM discount segment, sales in February 2019 were estimated at about PLN 20m, a decrease by 5% year on year. Cumulatively, in the period January–February 2019 TXM’s sales totalled approximately PLN 42m having dropped by 7% compared to the same period of the previous year. As at the end of February 2019, the TXM store chain was comprised of 380 stores with a total floor area of 101.3 thousand m2, which was 3.9% lower than at the end of February 2018. Revenue from the sale of merchandise generated by the online store in February 2019 amounted to approximately PLN 0.6m, just like the year before, and cumulatively in the first two months of the year it was approximately PLN 1.2m, down by some 6% year on year.

The Redan Group’s combined revenue of both segments in February 2019 reached approximately PLN 37m, having grown by 4% year on year. In January–February 2019, revenue stood at approximately PLN 76m, having grown by about 2% relative to the same period of the previous year. The retail space of all Redan Group stores at the end of February totalled 138.2 thousand m2, representing a decrease by 3% compared with February 2018.