This report reviews last year’s results for Tempe within the Inditex group, highlighting record sales and profits. The company, a key supplier of shoes and accessories and a prominent part of Inditex’s extended supply network in Tempe, reached its highest sales volume in more than three decades. The Garcia Peralta family holds a significant stake in the textile holding, and Tempe has not only outperformed prior results but also navigated pandemic-related challenges, contributing substantially to the group’s turnover in a single year. There was a modest improvement in 2019 revenue despite inflation and global tensions.
Rising costs did impact margins, and the company reported a decline in overall profitability. The consolidated balance sheet filed with the National Securities Market Commission shows a 11.7 percent decrease, with Tempe classified among the jointly controlled companies of the group.
According to the document, Tempe achieved sales of 1,408 million euros last year, a 7.8 percent increase from the prior year and the line between 1,400 million invoices marked another record for 2019. This aligns with Inditex growth, as the parent group raised revenue by 17 percent to reach 32,569 million euros.
Yet the improved top line did not fully translate into gains at the bottom line. The gross margin fell to 396 million euros, up only 1.2 percent year over year. Operating expenses rose by 14.9 percent to 246 million euros, and depreciation added another 25 million, further compressing earnings. Net income stood at 105 million euros compared with 119 million a year earlier, an 11.7 percent decline.
The report also notes that Tempe paid 27 million euros in dividends to Inditex during the year, two million more than the previous year. This implies that García Peralta holds a similar dividend level through its stake via Promociones Azarbe.
origins
Tempe was founded in 1989 as a 50 50 venture among Elche businessmen including Vincent Garcia, part of the Garvalin family, with the holding later joining Amancio Ortega. Today the company is led by Ortega’s daughter, Martha Ortega. Tempe oversees the design, marketing, and distribution of footwear and accessories for seven brands that Inditex collaborates with: Zara, Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, and Zara Home.
Tempe owners main holding company exceeds 19 million profits
The firm employs more than 2,000 people, with over 140 dedicated to product design. Its headquarters and various facilities are concentrated in the Elche Business Park. Last year the company expanded its logistics footprint with the creation of the Tempe 3 satellite and is pursuing further expansion in the industrial zone, including plans announced in 2019 to purchase land in Sagunto Park for a new logistics center.
Through its alliance with Inditex and the benefits it brings, García Peralta has built a broader business group that spans promoters, hospitality, and agriculture, among other sectors.