Top Secret sales still depressed, though on growing margin

In August, sales at Top Secret stores in Poland were PLN 11m, having dropped 12% relative to that recorded in the previous year, with the size of the sales network lower by 9% year on year. Despite weaker year-on-year sales, the adjustment of the price and commercial policy resulted in a rebound in margin.

Sales of Top Secret products in August 2020 totalled approximately PLN 15m and was lower by some 17% compared to August 2019. Top Secret’s cumulative revenue was approximately PLN 91m, down some 39% relative to the corresponding period of the previous year. Taking into account the Top Secret store chain in Poland, the key distribution channel, sales in August were PLN 11m, having dropped 12% relative to that recorded in the previous year, with the size of the sales network lower by 9% year on year.

“In the fourth month after reopening trade in shopping centres, visits and sales figures are still down year on year. On the other hand, we recorded another consecutive month of improvement in gross margin, which was attributable to the adjustment of the price and commercial policy,” said Bogusz Kruszyński, the President of the Redan Management Board.

Revenue from the sale of goods through the Top Secret online store in Poland in August 2020 totalled PLN 2.2m, down 8% over August 2019. Cumulatively, revenue generated by the Top Secret online store in Poland stood at PLN 14.8m and was lower by approximately 29% year on year. Although revenue dropped year on year, a higher margin on online sales was earned.

As at the end of August 2020, the retail space of chain stores was 28.7 thousand m2, down 21% compared to the end of August 2019. This was largely due to closure or loss of control of stores located abroad. Also, no new Top Secret stores were opened and some were closed after trading resumed, while part of the outlet network was closed due to reduced availability of stock from previous seasons.

Following the loss of control over TXM S.A., as of 18 July 2019 its revenue data is not published by the Redan Group. On 26 August 2020, Redan sold its equity interest in Top Secret Sp. z o.o. In connection with loss of control over the company as of September 2020 Redan will not publish monthly sales reports. The Redan Group’s financial data will be presented in its periodic reports.