Store Openings Boost Takko Fashion's Sales Development

Result for the first quarter 2021/2022 respectively affected by the ongoing lockdown – Reopening and start of summer season proceeding positively

Takko Fashion has announced its business figures for the first quarter of 2021/2022. In this period, the business development of the smart fashion discounter was strongly impacted by the Europe-wide lockdowns.

Despite this, the fashion discounter generated total net sales of 135.4 million euros in the first quarter. This is an increase of 2.9 percent compared to the same period last year on the back of even harsher lockdowns during the recent quarter. Remarkably: the positive sales figures were achieved throughout Europe operating at an average 51 percent of open store availability, compared to an average open store availability of 68 percent in the previous year. Karl-Heinz Holland, Executive Chairman Takko Fashion, adds: “We are experiencing a significant recovery of our business month by month as stores re-open. This becomes even more evident in the second quarter: with effectively all stores open again in June, we are very happy to be able to welcome back our customers in our stores, positively impacting sales revenues quarter to date.”

Since the end of June, Takko Fashion has been able to re-open all its European stores without major restrictions. Parallel to the first broader opening steps in the first week of June, Takko Fashion recorded sales growth of over 84 percent in Germany alone compared to the pre-crisis year 2019.

"In addition to the strong performance after the lockdown, Takko Fashion will be able to mitigate the negative effects caused by the long-lasting store closures through significant growth in the online shop, its Europe-wide branch network as well as high cost awareness," explains Kurt Rosen, who joined the company as Chief Financial Officer at the beginning of June.

The temporary shop closures in the first quarter had a significant impact on the company's liquidity. In retrospect, Takko Fashion demonstrated a high level of business resilience with the help of extensive measures to secure liquidity. In addition, a loan from banks, investors and owners in March helped to bridge the long closure phase. As a result out of this but mainly due to the positive sales development, the fashion discounter now holds at peak a liquidity of 150 million euros.

 

About Takko Fashion

Takko Fashion owns and operates more than 1,900 stores in 17 countries across Europe. In online as well as stationary retail, the company offers quality fashion collections at an attractive price. As a member of the Fair Wear Foundation, the Partnership for Sustainable Textiles, and as a partner of the Better Cotton Initiative, Takko Fashion is committed to sustainable and responsible production conditions as well as sustainable cotton production.

 

Disclaimer

The press release contains information on known and unknown risks, uncertainties, and other factors largely outside of the control of Takko Fashion S.à.r.l., Takko Luxembourg 2 S.C.A., and their affiliated companies (the "Group"), and which are difficult to predict and may lead to the actual development differing significantly from the development explicitly or implicitly presented within this press release.

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