In January 2020, Top Secret posted revenue of PLN 12m. The sales margin on the new spring collection being launched has been considerably higher than a year before.
Sales of Top Secret products in January 2020 totalled approximately PLN 12m, having dropped by some 30% year on year. At the same time the retail space of chain stores selling Top Secret, Troll and DryWash brand products was reduced by 15% year on year, to 31.4 thousand m2 at the end of last month.
“In January, sales at Top Secret stores in Poland were down 23% relative to that recorded in the previous year, with the size of the sales network unchanged. In the previous year, after the autumn and winter season we were left with a surplus stock of unsold merchandise. As a result, in the clearance season this enabled, and even required us to pursue very active promotional efforts to generate higher sales. This year, the availability of goods from the autumn and winter collection was 55% lower, leading to a 40% decline in their sales. Although the stock of merchandise from previous seasons was nearly three times higher, it did not offset lost sales. Due to the changes in the offer structure, in the current year the spring collection stock was also lower, but thanks to that it yielded a much higher sales margin. Despite that, as the amount of stock accumulated from previous seasons was higher, the total gross margin on all collections was fell 1.5 pp year on year.” – said Bogusz Kruszyński, the President of the Management Board of Redan.
Last month, revenue from the sale of merchandise through Top Secret online stores totalled PLN 1.7m, a decline by 40% over January 2019. It was caused by a less diverse product offer compared to the previous year and much lower availability and the resulting sales of autumn and winter items due to a markedly lower stock relative to the previous year.
Following the loss of control over TXM S.A. w restrukturyzacji (subject to restructuring), as of 18 July 2019 its revenue data is not published by the Redan Group.