“In three years, we have increased our revenue by 40%, so our focus for 2024 is on optimization and consolidation. We ended 2023 with 34.7 million euros in sales, a 10% increase from the previous year, and this year we expect to reach between 35 and 36 million euros,” said Jokin Umérez, CEO of Ternua Group, a Spanish company based in Mondragón (Guipúzcoa). As the figures demonstrate, the company has significantly grown its business in recent years. Before entering its next phase, the company aims to “refine operations and optimize processes,” as detailed by its CEO.

The conglomerate includes five brands: Ternua, Lorpen, Astore—three brands dedicated to sports and outdoor activities—Loreak Mendian, and Ternua Workwear. The latest addition, Ternua Workwear, focuses on sustainable workwear. “Many people work outdoors and need functional clothing that protects them from the weather. What drove us to enter this segment is the increasing importance of sustainability in workwear, and we believe we have something valuable to contribute to this sector,” explained Umérez.

Ternua Group’s commitment to sustainability is deeply ingrained in its DNA. Recently, the company received verification from SGS (a global testing, inspection, and certification company) for its contribution to the Sustainable Development Goals (SDGs). Its environmental strategy revolves around four key areas: product, emission reduction, circular economy, and internal governance. The company has implemented a management system similar to that proposed by B Lab, “which promotes positive impact on society and the environment,” according to Umérez. Although the company does not yet have B Corp certification, it considers it “a matter of time.”

“Beyond labels and certifications, we always strive to minimize negative impact and maximize positive impact. We acknowledge that our activities inherently have a negative impact, and no one can claim to be 100% sustainable, but we are committed to working in that direction. Without losing sight of the need to remain competitive, we must also be financially sustainable,” Umérez elaborated.

International sales and full integration of Loreak

While Ternua Group does not disclose its activity by brand, it does specify that last year, 33% of its revenue came from international markets. In terms of sales channels, 8% came from digital sales, while the bulk of the business was generated through wholesale—operating with more than 1200 points of sale in 50 countries—and retail, with 37 self-managed points of sale, including monobrand stores, corners in El Corte Inglés, and in Printemps in the French market.

Beyond Spain, Ternua Group has a strong presence in France—where it has a subsidiary—Germany, and Italy, managing its commercial network directly in these countries. In other regions, it operates through “key accounts.”

The company’s growth in recent years has been based on internationalization, expanding and strengthening its presence in key markets, and diversification. This includes the launch of Ternua Workwear and the acquisition of Loreak Mendian in 2019. The pandemic either unites or separates paths, and in the case of the outdoor company and the Donostia-based brand, an icon of Basque fashion in recent decades, it has forged a lasting relationship.

“The planned process has been executed, and today we can say that Loreak Mendian is fully integrated into the group. Our strategy is to further enhance the values of Loreak Mendian, recognized as a highly creative brand from San Sebastián with a strong urban and artistic focus. We achieve this through events, collaborations, cultural actions, etc.” Umérez detailed.

Regarding business strategy, Umérez emphasized a focused approach to markets and a broad approach to channels. “We see Europe as our main arena, with Spain and France as primary markets, although we also have activities in the UK, Italy, and Benelux. Loreak Mendian has always had a retail aspect that we continue to promote, complemented by e-commerce and, since integration into Ternua, an expanded wholesale presence, especially in Spain and France.”

In addition to being a year of consolidation, with stable sales expected, 2024 is a year for Ternua Group to map out its plans for 2025 and 2026. “We aim to increase our direct market penetration through our own stores,” Umérez explained regarding the company’s plans for Loreak Mendian. While the company is known for its cautious approach, it is working on an expansion plan focused on Spain and France. “Currently, we have a temporary store in Saint-Jean-de-Luz where we are testing products and gathering key insights, a small laboratory to refine our strategy for 2025,” he concluded.