360° Padel Group has reduced its current year revenue forecast to €62 million, according to CMDsport, as the industry-wide inventory glut has sparked a margin-narrowing price war. However, by the end of 2023, it hopes to be operating more than 500 physical stores between its Pádel Nuestro and Pádel Nuestro Express banners.
The original sales forecast, dating back to October, was for full-year totals of €55 million for 2022 and €80 to €85 million for 2023. The final figure for FY22 turned out to be €51 million.
360 Padel remains optimistic. For one thing, it believes the inventory glut will have ebbed away by next summer. For another, it is poised to achieve three consecutive years of increasing revenues: €40 million in 2021, €51 million in 2022 and the expected €62 million in 2023.
These are group revenues. The holding company’s business is divided into retail sales (85%) and brands (15%). The first comprises Pádel Nuestro, Padelmanía, Street Padel and Time2Padel. The second is under the Pro Padel Group, which operates the Siux, Vairo, Vision, Eclypse, Mystica, Orygen, Padel Session and Wingpadel brands.
Apheon, holder (through Ergon Capital Group) of the majority stake in 360°, is, according to CMD, “absolutely confident and convinced” that the market for pádel has a bright future, while 360° itself is certain that about a year from now “the Spanish and worldwide markets for pádel will enter into a new, definitively favorable cycle.”
Padel Pro Group sells Siux racquets through a retail competitor, Tennis-Point, which is presently insolvent. These sales are apparently of small account, and 360° is unconcerned.
As for stores, Pádel Nuestro now operates 93 (about 50% in Spain), with another 375 Express stores at clubs (about 60% in Spain). According to CMDsport, Pádel Nuestro plans to round out 2023 with 103 Padel Nuestro stores and more than 400 Express stores. The group, meanwhile, plans to open 15 own stores over the next year and a half. One of these, in Florida, will be the first in the US, where the group has recently established a subsidiary.
