Top Secret improved sales despite unfavourable weather conditions

In October 2018, Top Secret’s revenue went up 2% year on year, to PLN 25m. Despite high temperatures, which suppressed demand for autumn ranges, stronger sales performance was achieved thanks to effective promotional campaigns. The Redan Group, which consolidates the results of Top Secret apparel chain and TXM discount retailer, posted total revenue of PLN 56m in October.

“The sunny weather in October, combined with high temperatures for this time of the year, adversely affected the sales of the autumn collection. As a result, we had to launch aggressive promotional measures, thanks to which sales in B2C channels in Poland improved year on year,” said Bogusz Kruszyński, the President of the Management Board of Redan S.A.

In October 2018, total sales of merchandise in the fashion segment amounted to about PLN 25m, having increased by 2% compared to the same period of the previous year. In that period, the retail space of chain stores selling Top Secret, Troll and DryWash brand products was reduced by 2%, to 37.0 thousand m2 at the end of October 2018. Cumulatively, revenue in the fashion segment amounted to approximately PLN 193m, up approximately 3% compared with the corresponding period of the previous year. Revenue from the sale of merchandise through Top Secret online stores in Poland and Ukraine in October 2018 totalled PLN 3.5m, having grown by 17% over October 2017. In January–October 2018, revenue generated by those Top Secret online stores was PLN 28.2m and was higher by 10% than in the same period of the previous year.

In the TXM discount segment, sales in October 2018 were estimated at about PLN 31m, a decrease by 13% year on year. Despite lower revenue, the volume of the sales margin remained unchanged year on year, which was primarily owed to much smaller markdowns made in the discount segment in the period relative to the previous year. Cumulatively, in the period January–October 2018 TXM’s sales totalled approximately PLN 280m having dropped by 7% compared to the same period of the previous year. As at the end of October 2018, the TXM store chain was comprised of 387 stores with a total floor area of 103.6 thousand m2, which was 2% lower than at the end of October 2017. Revenue from the sale of merchandise generated by the online store in October 2018 amounted to approximately PLN 0.7m, having dropped by 29% year on year, and cumulatively in the first ten months of the year it was approximately PLN 5.6m, down by some 26% year on year.

The Redan Group’s combined revenue of both segments in October 2018 reached approximately PLN 56m, having dropped by 7% year on year. In January–October 2018, revenue stood at approximately PLN 473m, having slipped by about 3% relative to the same period of the previous year. The retail space of all Redan Group stores at the end of October totalled 140.6 thousand m2, representing a decrease by 2% compared with October 2017.