The gross margin earned by Top Secret in February 2020 was up 14.9 pp relative to the same period a year before. This was mainly due to a higher share of the new collection and lower markdowns to customers for both clearance and spring items.
Sales of Top Secret products in February 2020 totalled approximately PLN 12m, having dropped by some 28% year on year. At the same time the retail space of chain stores selling Top Secret, Troll and DryWash brand products was reduced by 14% year on year, to 31.5 thousand m2 at the end of last month. Cumulatively, Top Secret recorded revenue of approximately PLN 24m, down some 29% relative to the corresponding period of the previous year.
“In February, sales at Top Secret stores in Poland were PLN 9m, having dropped 13% relative to that recorded in the previous year, with the size of the sales network lower by 2% year on year. Last year, after the autumn and winter season we were left with a surplus stock. As a result, in the clearance season we pursued very active promotional efforts to generate higher sales. This year, the value of the autumn and winter collection stock at Top Secret stores was 62% lower, which resulted in a 59% decline in sales. We also reduced markdowns both on the clearance items from the autumn and winter collection, as well as on the spring collection items. Combined with a higher share in sales of the new collection, this generated a much higher total gross margin on all collections – up 14.9 pp year on year,” said Bogusz Kruszyński, the President of the Management Board of Redan.
Revenue from the sale of merchandise through Top Secret online stores in Poland in February 2020 totalled PLN 1.9m, a decline by 36% over February 2019 following from much lower sales of autumn and winter collection clearance items. Cumulatively, revenue generated by Top Secret online stores was PLN 3.6m and was lower by approximately 37% than in the corresponding period of the year before.
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.