Van de Velde sees fall in first half profit
Van de Velde, the owner of lingerie brands Rigby & Peller, Marie Jo, Intimacy and Andres Sarda, saw its net profit fall by 8% to Â€22.6 million in the first half of 2012.
While turnover edged up 0.9% to €98.7 million, EBITDA was 7.8% lower than the same period last year at €31.3 million.
On a like-for-like basis (including like-for-like deliveries and excluding retail turnover at Rigby & Peller), consolidated turnover fell by 2.8% as wholesale turnover dropped 3% and retail turnover declined by 10% in local currency (1.5% in euros) at the group's Intimacy brand. Van de Velde took over the operational management of Intimacy on 1 May 2012, and has implemented a plan to begin growing turnover in early 2013.
The decline in the group's EBITDA was driven by the fall in wholesale turnover combined with a slightly lower gross margin compared with last year, primarily due to the rise in stitching costs in China. There was also a rise in costs related to the implementation of the group's growth programme.
In Europe, retail turnover at Rigby & Peller rose 8% as a result of new store openings in Germany and Spain. Its contribution of retail turnover was €5.5 million which represented growth of around 4.5% on a store-to-store basis compared with the previous year.
Van de Velde said in a statement that 2012 continues to be ”tough” and that it expects 2012 EBITDA to fall in line with the fall during the first half of the year.
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