earns 32 million in three years and distributes 6 million in dividends

In 2015, an investment company associated with the Sainberg investment fund entered into Scalpers, and it is from there that the firm begins to make large investments and drive the company’s growth by opening new stores. “These were years of strong growth, especially online, in markets, in international sales…,” company sources explain.

Ten years ago the company’s turnover was 9.7 million euros, EBITDA was one million euros, the net result barely reached 300,000 euros, and the debt was 3.3 million euros. Ten years later, photographs of the Seville fashion brand show its meteoric rise. Its parent company (not counting its subsidiaries in Mexico and Portugal, which contribute 5% of its revenues) last year had a turnover of 165.8 million, its EBITDA was 26.4 million, its profit was 12.5 million, and its debt was 23. 3 million. That is, during this period Scalpers increased its income almost 17 times.

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The firm is controlled by Trendsetters & Fashion Investments (79%), Borja Vazquez owns 12%, and Alfonso Vivancos owns approximately 6%. Starting in 2021, thanks to the good progress of the company, scalpers began to turn to investment funds, “private investments”, companies in the sector… The main shareholders decided to hire Secret receive offers and conduct appraisals, increasing the likelihood of a sale if a good offer is made to shareholders. Arcano commissioned all the proposals, but none of them convinced shareholders. “We continue to receive interest from purchases, but now we are focused on bringing the company’s sales to 300 million by 2025,” says Borja Vazquez.

Regarding the continuity of the Sainberg fund in Scalpers since 2015, the president of this fashion group confirms the absence of a buyback agreement with shareholders. “They are happy,” says this manager. As for the possibility that he and Vivancos will increase their equity stake in the future, Vasquez adds that “we feel comfortable where we are because we run the company and we have confidence in the investment vehicle, although I don’t against having more shares in the company, but it will depend on the circumstances.

E-commerce and stores

Revenue growth in 2023 was 20%: 22% online sales and 18% in physical stores. Online sales from scalpers already account for 25% of total revenue, both through their own website and through marketplaces. Vasquez emphasizes that the idea that online sales could take over everything did not arise. Online sales grew more than brick-and-mortar sales in 2020 and 2021, but people have returned to shopping in brick-and-mortar stores and online retail growth will be more moderate in 2022. “Our goal – according to Vasquez – is that in three or four years online sales will be 30%. “It’s difficult, but we’ll try.”

Scalpers has 333 outlets, including stores and franchises, around the world, including “corners” in El Corte Inglés and Palacio de Hierro in Mexico. Of the total, 110 are own stores, 213 are “corner” stores and 10 are franchised. In Spain there are 285 points of sale between shops and corners, representing 85% of the total.

There were years when Scalpers opened 40 points of sale. In 2024, they hope to open 14 establishments and about 30 eateries (they require less investment). “In 2024 we are going to open shops or move others to Santiago de Compostela. Shopping center Xanadu Madrid, Valencia (Woman)…” the company explains, emphasizing that the company’s strategy is no longer to open many small format stores for men or women, but to move to larger formats. To do this, it is moving stores to some cities, choosing a better location to concentrate previously separate women’s and men’s stores or taking the opportunity to open a women’s store next to a men’s store. Thus, sales per square meter increase, and with them profitability.

Based on this, in September 2023 he opened the Gran Vía megastore in Madrid and in December 2023 in Tetuan Street in Seville, a location previously occupied by Zara. Company sources note that “the strategy is to grow not so much in the number of stores, but in their quality. The ideal is to have larger formats in which all segments are present: men’s clothing, women’s clothing, children’s clothing, “guest brands”, sports shoes, accessories, accessories…” “All the stores we are looking at are larger than 400 or 500 square meters, whereas previously the format was 120 or 140 square meters,” says the president, who does not rule out 800-square-meter spaces if they adapt to the circumstances.

Scalpers Woman started its activities in 2018 and has more experience in development than men’s fashion. a segment in which Scalpers is today among the “top seven” national players. Today, the Scalpers Woman segment accounts for 27% of the company’s sales, but takes up less square footage than men’s fashion. “The women’s market is more competitive, but it’s huge, and that allows you to scale further,” emphasizes Vasquez, who doesn’t shy away from the fact that women spend more money on clothing than men.

USA

Scalpers is aggressively pursuing its international expansion after closing stores in the UK and Paris during Covid. “Now,” the company says, “we have our own company only in Mexico and Portugal, but in other countries we work on a franchising model. To reduce the risks of international expansion, we enter into agreements with local partners who invest in franchises, and depending on how things go, we decide whether or not to enter this geography. This happened in Peru, Chile, Colombia, Panama and Guatemala.

Today the group has Scalpers Mexico, where it is in a 50/50 joint venture with a local partner, and Scalpers Portugal, where it owns 100%. “A month ago we entered Benelux with a 50% local partner in a Mexican scheme. In the Benelux, a store has opened in Ghent and two more are planned,” they say.

The firm is not currently considering entering the US market, “because,” emphasizes Borja Vázquez, “it is an ultra-competitive and very difficult market.” “We are not attacking with the idea of ​​opening one or two stores, but with a strategic plan, with a lot of investment, and we are not considering that at the moment.” Yes, it is preparing to land in Italy in 2024 or 2025 with local partners such as Mexico and Benelux.

Robots in the logistics center and new company headquarters

The company, which employs 1,400 people, currently occupies two floors of the exhibition’s Italian pavilion. Scientific and Technological Park Kartukha, no.where about 120 people work. He has now embarked on a project to construct a new 4,700 square meter building in the park. Work began in April and will last 18 months, so it could be ready in late 2025 or early 2026.

And it invested 5 million euros in its logistics center in Guillen (Seville), including its purchase and expansion. Now 1.5 million euros will be allocated for the robotization of this platform. Scalpers, which delivers online orders within 24 to 48 hours, has just started charging for returns, which is very common among young people, introducing additional costs and a logistical complication.

On the other hand, Scalpers grew by purchasing other brands: 33% of Victoria, a premium women’s brand associated with Vicky Martín Berrocal, which has stores in Valencia, Madrid, Seville and Malaga; 51% of Deeply, a Portuguese surfing brand acquired at the end of 2022 with the idea of ​​creating a sports brand; and 51% from Mim Shoes, from footwear. “At the moment there is nothing that can be bought from other brands,” says Borja Vazquez.

Scalpers also has guest brands in its stores, a situation that continues to grow. “We continue to add new brands,” said the company, which understands that it is not cannibalizing its products because these are brands that complement products that are not in its portfolio. “We choose brands carefully so that they do not harm us,” they add.