Top Secret slightly underperformed in March

Revenue of the Top Secret fashion chain reached PLN 18m in March, slightly less than a year before. One of the reasons for that was that the holiday shopping period occurs later this year – in the first half of April. Last month, the entire Redan Group, which also includes the TXM discount chain, posted revenue of PLN 40m.

“We regard Top Secret’s sales in March as moderate.” Although we recorded slightly lower revenue year on year, the setback was attributable mainly to unfavourable weather and duration of clearance of the previous collection, which lasted longer than a year before. We also didn’t benefit from the usual shopping rush related to the upcoming Easter Holidays. This year, it is due in April,” said Bogusz Kruszyński, the President of the Management Board of Redan S.A. “We also recorded a stronger impact of non-trading Sundays, which shifted sales in smaller towns to large shopping centres,” he added.

In the fashion segment, total revenue from the sale of merchandise in March 2019 was approximately PLN 18m, having dropped by some 8% year on year. In January to March, revenue in the fashion segment amounted to approximately PLN 53m and grew by about 8% 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 March 2019 totalled PLN 3.8m, having grown by 29% over March 2018. Cumulatively, revenue generated by those online stores reached PLN 9.8m and was higher by 14% year on year. As at the end of March 2019, the retail space of chain stores selling Top Secret, Troll and DryWash brand products was 36.8 thousand m2 and remained relatively flat over the end of March 2018.

In the TXM discount segment, sales in March 2019 were estimated at about PLN 22m, a decrease by 20% year on year. As at the end of March, the TXM store network included 375 own stores with a total area of 100.0 thousand m2, down 5.8% relative to the end of March 2018. In the period from January to March 2019, TXM’s sales totalled approximately PLN 64m and were some 12% lower than in the same period of the previous year. Revenue from the sale of merchandise generated by the online store in March 2019 amounted to approximately PLN 0.5m, having dropped by 12%.  Cumulatively, in the first three months of the year it was some PLN 1.8m, about 8% less than in the corresponding period a year before.

The Redan Group’s combined revenue of both segments in March 2019 reached approximately PLN 40m, having dropped by 15% compared with the same period in the previous year. Cumulatively, revenue stood at approximately PLN 117m, down about 4% year on year. The retail space of all Redan Group stores at the end of March totalled 136.9 thousand m2, representing a decrease by 4% compared with March 2018.