Tous brand breaks sales record, with 450 million, and shoots up profit by 60%

Tous has amply met its objective of exceeding 400 million euros in turnover in 2022. Once the pandemic was definitively left behind, and in line with the development achieved by other major brands made in Barcelona such as Mango, the jewelry group has set its historic turnover record, reaching 450 million euros, which represents a growth of 17% compared to the previous year.

The increase in profitability has been much more accelerated, as the operating profit (EBITDA) has risen by 26%, to 101 million euros, and net profit has soared by 60%, with 36 million. "This is an exceptional figure," highlighted Tous CEO, Carlos Soler-Duffo, who defined 2022 as "a record year for Tous in all areas." It should be remembered that in 2020 the health crisis caused the chain to incur losses, although in 2021 it returned to profit (net profit of 22.3 million and an EBITDA of 80.7 million).

According to the executive, the good figures for 2022 have been achieved "in a complex and changing socioeconomic context" in which the Manresa-based firm has been "brave," in reference to the launch of a new brand image and strategy that "has been very well received" and has allowed the company "to continue anticipating the market." "We have made very significant investments that put us in a very good position to continue building the future," says Soler-Duffo, who puts the investments made at 30 million euros, mainly destined for technology, business innovation and the progressive renovation of stores to adapt them to the new model.

The Tous family chain ---25% owned by the Swiss fund Partners Group--- currently has a network of 643 owned and franchised points of sale worldwide, although its five main markets are Spain, Mexico, the United States, Poland and Portugal. In the last year, the brand has had to face the paralysis, first, and then the definitive abandonment in July of its direct operations in Russia as a consequence of the invasion of Ukraine. The closure of that market ---where it operated with 23 franchises and 32 owned stores--- has had an economic impact of close to seven million euros on the company's accounts, which has also had to face the energy crisis and rising inflation.

After experiencing exponential growth during the pandemic, Tous's online store generated 21% of its turnover in 2022 and is now available in 42 countries. According to the CEO, the brand has a clear commitment to digitalization and an omnichannel sales strategy. Diversification is also key for the firm, which obtains 70% of its income from jewelry sales, 20% from accessories collections, and 10% from the watch area.

New brand strategy

With a workforce of over 4,000 people and presence in 46 countries, Tous has just celebrated its centenary and last September presented a new brand strategy "to last another hundred years" and adapt to the market, as explained by the group's president, Alba Tous. The firm has launched a new black, more robust and forceful logo to increase its visibility, and will progressively implement a new store model with a much more minimalist image that allows the jewelry to be better displayed and with "a more experiential character." In addition, the changes, largely aimed at attracting a younger audience, will also affect new jewelry collections and its iconic bear, which goes from being flat to adopting a three-dimensional silhouette.

Finally, Tous launched last year a "new corporate purpose," an English motto with which the company summarizes the meaning of its business and which it will use globally: We craft a world of joy. "The Tous world, rather than explaining it, it's better to feel it," reflected Rosa Tous, who explained that with this motto they want to convey concepts such as the commitment to help people feel better (we); over a hundred years of craftsmanship (craft); internationalization and commitment to sustainability (world) and "the joy, excitement and passion" (joy) they put into their collections.