Bimba y Lola ends 2017 on a high note as sale nears
today May 25, 2018
Spanish brand Bimba y Lola has posted double-digit revenue growth ahead of a possible sale to investment fund Permira. The brand ended 2017 with revenue of 180.8 million euros ($211m, £158m), showing an increase of 18.5% in sales against the previous year.
The results mark the 10th year of unbroken growth for the brand formed by Maria and Uxia Dominguez, primarily due to its performance in its strategic markets. Whilst Bimba y Lola grew by 18.8% in Spain, international markets accounted for 26% of sales in 2017. In France and Portugal, revenue increased by over 20%, while Singapore in Asia racked up growth of 18%. In Latin America, the business recorded an 8.3% increase in Mexico, and Chile experienced the biggest jump, up 30%.
On a like-for-like basis, the brand said sales increased by 11.3%. EBITDA reached 33.5 million euros ($39m, £29m), representing an increase of 53% over 2016. The company attributed the increase to another margin improvement, the third in the last three years.
Bimba y Lola is reportedly on the verge of agreeing its sale to investment fund Permira, which in July 2017 sold its stake in Cortefiel. According to reports, the British fund has offered around 400 million euros for the Spanish designer brand, outbidding Bain Capital and KKR.
Last year, Bimba y Lola expanded its store network with the opening of 27 new stores, and now has 241 stores in 20 countries. Highlights included the arrival of the womenswear and accessories brand in Colombia and the strengthening of its footprint in Latin America. This year, the company plans to enter new strategic markets and continue to expand where it already operates. Another boost will come through its online channel, which has taken the brand to 26 countries. To support its continued growth, Bimba y Lola will expand its facilities in Mos, Spain, and open new headquarters.
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