Covid put a stop to Tempe’s good run. The Spanish company that creates, distributes and sells footwear for all Inditex brands (of which the Spanish fast fashion giant owns 50%), decreased its revenue to below 1 billion euro. It’s the first time since 2014. Sales went down by 28.7%, but, even then, Tempe managed to close the year out with 62 million euro in profits.
Below 1 billion
Tempe’s revenue decreased by 28.7% in 2020, for a total of 997 million euro. The decrease was drastic, but inevitable, compared to the record year the organization had in 2019, when the revenue surpassed 1.4 billion euro. Even so, profitability remained high and better, in fact, than that of 2019, also thanks to a 20% cut in operational expenses. The summary is: Tempe’s 2020 income statement shows 62 million euro of profits (down from the 101 of 2019).
Like Inditex
As explained by Modaes, Tempe’s decrease reflects that of Inditex. Tempe was created in 1989 and now employs about 1.500 people. It has manufacturing plants in Mexico, Brazil, China, Hong Kong and India. It’s 50% owned by Inditex and 50% by Vicente García Torres. The company’s legal HQ is inside the Inditex Hub of Arteixo (La Coruña), but its operational HQ is in Elche (Alicante).
Images from tempe.es
Read also:
- 1.4 billion in 2019: Tempe holding on laying off employees
- Inditex face emergency after a positive 2019 and set aside 287 million euros
