El Corte Inglés has shown remarkable resilience during the challenging times brought on by the COVID-19 pandemic, as evident from its recent positive EBITDA results in the second quarter. Despite facing economic challenges, the Spanish retail giant managed to achieve 64 million euros in earnings from June to August. This is a significant achievement considering the 30% decrease in turnover, amounting to 2.82 billion euros, and the decline in gross profit by 26.9%.
The company attributes its success to the reopening of stores and the growth of online sales, which remained stable at 2.84 billion euros. However, the decrease in sales was primarily due to the reduced influx of national and international tourists impacted by the pandemic. The travel division, Viajes El Corte Inglés, faced the most significant impact with more than a 90% reduction in revenues.
Despite the challenges faced, El Corte Inglés reported an increase in its sales margin by 170 basis points and generated a cash flow of 679 million euros through increased sales, cost savings, and strategic measures. To navigate through these difficult times, the company has implemented ERTE furloughs affecting staff in regions heavily impacted by COVID-19 restrictions.
While the travel division continues to face challenges with furloughed employees, El Corte Inglés remains committed to supporting impacted staff until February 2022. The company is looking ahead with optimism, focusing on the upcoming Christmas campaign and diversifying its business through investments in digital transformation, security services, and social responsibility efforts.
As El Corte Inglés continues to adapt to the changing landscape, it remains a strong player in the retail industry, showcasing resilience and strategic planning during unprecedented times.
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