Van de Velde turnover up but investment hits profits

PrimaDonna Sport performed well in 2017, as did swimwear.

Van de Velde has recorded a rise in turnover but saw its profits fall in 2017 as it invested in international growth.

The Belgian group, which owns Rigby & Peller and the Marie Jo, Andres Sarda and PrimaDonna brands, said turnover increased by 1.2% to €209 million (£184.4m) in the year to December 31.

This was boosted by growth in Van de Velde’s swimwear and sports collections and an 8.3% growth in like-for-like retail sales across Europe.

Story continues below

Profit before tax, however, fell by 10.1% to €47.5m from €52.8m the year before while consolidated EBITDA loss for the year was up 13.9%.

The main reason for the decline was increased cost initiatives to support future international growth.

Van de Velde said it is in the midst of upgrading its ICT and ecommerce infrastructure and ramping up its training of employees.

Wholesale EBITDA decreased by €3.5m due to higher deliveries of its SS17 collection, the group said. Van de Velde also experienced a slight decrease in gross margin.

But retail EBITDA increased by €200,000 due to a rise in like-for-like sales and the closure of loss-making stores.

In 2018, Van de Velde said it aims to restore its turnover growth to the “historic average”, partly with the introduction of Marie Jo Swim and the impact of investment initiatives that were set up in 2017.



Related posts