Tous sees profits more than double to 27.3 million euros in 2018
today Jul 17, 2019
Jewellery and accessories brand Tous has reported a consolidated net profit of 27.3 million euros ($30.6m, £24.6m), in 2018, up 120% on 2017. Excluding various extraordinary costs recorded in 2017, profits rose 38% last year.
Tous president Alba Tous told Efe that 2017 was an unusual year, with the company experiencing a series of extraordinary issues such as natural disasters in some Latin American countries, unfavourable exchange rates, high investments and the Catalan independence movement which had a negative impact on third quarter results in 2017.
In contrast, 2018 was a calmer year for the business, “without earthquakes or floods, and we have been more effective in the markets where we operate,” Tous said.
Group revenues reached 396.4 million euros ($444m, £357m) in 2018, up 4.5% on the previous year, while direct-to-consumer sales, including all sales made in Tous stores and Tous franchises, rose by 4.5% to 466 million euros.
Tous CEO Carlos Soler-Duffo, told Efe that 2018 was a “very good year” and that annual profits of 27.3 million euros demonstrate that the company “is in good shape” and accelerating profitability.
Last year was marked by an international expansion, with the brand now operating in 54 countries. Two out of three stores are now located outside of Spain.
Tous, which has 702 stores, invested 55 million euros to drive innovation, brand development and a store refit programme in 2018. This represents a 15% increase on the previous year.
Online sales grew by 43%, underlining the company’s “strong commitment” to its digital transformation, with omnichannel infrastructure and the flexibility of its service helping drive the growth.
Tous, a luxury brand with affordable prices, launched online in five new countries last year, taking the total number of online markets to 19.
So ecommerce has become the third largest market by sales volume for the company after Spain and Mexico, accounting for 8% of all revenues.
There was growth across all categories, including jewellery, watches, handbags and accessories, especially the jewellery segment, whose sales grew 4.4% and account for 67% of revenues.
The company’s president highlighted its commitment to local talent, thanking its teams who work at the firm’s headquarters in Manresa and Sabadell (Barcelona) in 20,000 sq mt facilities that are home to 700 people.
The company will celebrate its 100th anniversary in 2020 with a series of initiatives that will commemorate the brand’s heritage and future projects.
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