Tous faces the future with optimism after achieving a new record in revenues and profits in 2023. The family company based in Manresa (Barcelona) presented this Wednesday a new strategic plan aimed at enhancing the desirability of the brand and its uniqueness within the world of jewelry. No revenue targets have been publicly set, but this new roadmap, which contemplates horizons of three, five, and ten years, will be based on promoting "qualitative, healthy, sustainable, and differentiating growth," as explained by the firm's CEO, Carlos Soler-Duffo.
The new plan, called GEM (Growth, Elevation, Mindset) in a nod to the color of the gems in its jewelry, also prepares the ground for an eventual exit of Tous's investment partner, the Swiss fund Partners Group ---owner of 25% of the capital--- and is launched at a sweet moment for the company, both commercially and financially. Thus, the company has closed with full satisfaction the difficult four-year period marked by the pandemic, which has resulted in a 21% growth in sales and a 72% increase in net profit. Likewise, between 2019 and 2023, Tous has increased the weight of its online sales channel from 9% to 23%, which is expected to continue growing, although the group reaffirms its commitment to physical stores ---it now has a network of 637 establishments--- and to having high capillarity in its key markets: Spain, Mexico, the United States, Portugal, Poland, Chile, Colombia, and Saudi Arabia.
Tous closed the 2023 fiscal year with a turnover of 477 million euros, a figure that represents a 6% growth compared to the 450 million recorded in 2022. The goal is to reach 500 million this year. Much more intense has been the increase in net profit, which amounted to 50 million, a 40% increase. This leaves far behind the losses of 10.8 million registered in 2020 as a consequence of the pandemic, which forced the closure of its stores. EBITDA advanced 15%, to 116 million. Throughout the last fiscal year, the group invested 38 million, a 25% increase, in improving its stores and strengthening its technological infrastructure and omnichannel sales strategy.
"We have achieved all these quantitative figures, having also done all our homework internally from a qualitative point of view. Tous is experiencing a very exciting stage," explained Soler-Duffo, after emphasizing that the good results of 2023 represent a clear "internal recognition" of the efforts made by the company. "The profitability and growth of Tous is very healthy; now we see that everything made sense," he reflected.
According to the executive, the GEM plan ---which has had the advice of Rothschild--- contemplates a very selective opening of stores and also foresees a very contained territorial expansion of the brand, since the priority is to grow and deepen its presence in key markets such as the United States. In total, the group operates in 40 countries, 70% with its own stores. "We expect attractive growth, but not exponential. We still have a lot of potential for growth in our top markets, so we will not see big bets on entering new markets," said the executive. In this sense, he explained that more accelerated growth and with more openings ---for example, in the United States--- could be seen from the third year of the strategic plan, that is, from 2026.
The fourth generation of Tous, made up of ten cousins
After being asked about the possible divestment plans of Partners Group, which entered Tous' capital in 2015, the CEO stated that it is something that "will happen someday," implying that there are no immediate plans. However,has admitted that the new strategic plan "contemplates all options" to face the "predictable fact that there will be a change in the shareholding.""We do not have an IPO on the table; the range of options and paths is wide. We have an enviable relationship with Partners Group, their exit is something that will happen, but I don't see any rush," he commented. Among the multiple options, the Tous family could consider repurchasing the 25% or bringing in another private equity firm or investment partner that fits with their future growth strategy. Soler-Duffohas stressed that the family is "totally involved" and "passionate" with the day-to-day of the company and has explained that a fourth generation is rising, made up of ten grandchildren, descendants of the four daughters (Alba, Rosa, Laura and Marta) of the marriage between Salvador Tous and Rosa Oriol.One of them has already started working at the company.Tous has recently remodeled its board of directors with the incorporation of four independent directors who will bring their experience to the company: Martin Brok (former president and former CEO of Sephora), Patricia Sancho (former CEO of Temperley London), Pierre Denis (former CEO of Jimmy Choo) and Steve Davis (former president of Fanatics).
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