Lingerie group Van de Velde sees profitability fall in 2017
In early January, Belgian lingerie group Van de Velde reported a 1% rise in revenue over 2016, having reached €209 million. The figure was revised upwards to 1.2% with the publication of the consolidated results (+1.9% at constant exchange rates). However, taking into account the largely negative exchange rate effects, revenue stood at €205.6 million, equivalent to -0.6%.
EBITDA fell from €61.9 million to €55.7 million, losing 10.1%. In like-for-like terms it actually lost 13.9%, down to €53.5 million.
To explain these results, the Belgian group is pointing the finger at its wholesale performance. The channel's contribution to EBITDA fell by €3.5 million in like-for-like terms, due to increased deliveries for the Spring/Summer collection. Van de Velde also reported a weaker gross margin. In parallel, the contribution to EBITDA of retail sales has improved by €0.2 million in like-for-like terms.
Other explanations for the group's performance must be sought in the rising costs it sustained to bolster its international ambitions. Van de Velde has in fact invested heavily in marketing, advertising, e-commerce, recruitment and training. Also, Van de Velde stated its costs for improving delivery performance to multibrand clients have risen.
In 2018, the Belgian group hopes to get back to its habitual growth rate. Notably, Van de Velde has high hopes for its new swimwear line Marie Jo Swim, launched last January.
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