Tom Tailor increases profitability in 2024 despite revenue decline

Clothing supplier Tom Tailor continued to increase profitability this year, following gains made last year.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose by 13.8 percent year-on-year in 2024, the Hamburg-based company announced on Wednesday. This was made possible by an optimised cost structure and a higher gross profit margin. The company did not disclose an EBITDA figure.

“In a challenging economic environment, the positive development of our operating result and profitability is clear proof of the effectiveness of our measures,” explained managing director Gernot Lenz.

Tom Tailor's revenue falls in 2024

Revenue fell by 3.9 percent year-on-year to 588 million euros in the past financial year. The wholesale business continued to account for the largest share of total revenue, at 52 percent. However, it recorded a decline of 6.1 percent. This was due to a challenging market environment in its core markets.

The direct-to-consumer (D2C) division achieved revenue parity compared to 2023 in the past year, thanks to good business in Southern and Eastern Europe. On a like-for-like (LFL) basis, revenue grew by 3.4 percent.

Improved margin

The gross profit margin grew from 52 to 56 percent. Tom Tailor attributes the slight increase, despite the decline in revenue, to improved purchasing control, stricter cost management, and fewer markdowns in its D2C business.

According to the fashion company, the positive trend in operating profit is continuing this year. So far, Tom Tailor has also recorded clear revenue growth in 2025. However, the clothing supplier did not disclose the exact figures.