Takko Fashion has had a strong six months. The German textile discounter is now betting on future expansion, including into new European markets.
Profit jump and refinancing
During the period between February and July, Takko Fashion achieved record sales of 635 million euros, even though it only meant modest growth of 2%. However, the brand hardly opened any new stores, so nearly all growth was like-for-like. Adjusted EBITDA moreover bounced 59% to 97 million euros, providing a 15% profit margin.
Takko also recently completed a refinancing. The new arrangements include a five-year extension of credit lines – which normally expired in 2025 and 2026 – and the issue of a 350 million euro bond. CEO Martino Pessina sees the successful refinancing as confirmation of the market’s confidence in the company’s growth strategy.
Focus on expansion
Now that the German clothing discounter has more security and financial clout thanks to the refinancing, new CEO Martino Pessina is focusing on additional expansion. Although the focus is on the German home market, the company also sees opportunities to expand into new markets in Europe.
In 2023, a large part of the shares came into the hands of lenders in exchange for a debt restructuring. Back then, the company already planned to push for European expansion. The discounter has about 2,000 stores in 17 European countries. In fiscal year 2023/24, the chain had a turnover of 1.27 billion euros.
