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current news

Van de Velde: First Half Sales May Decline

(Filed Under Financial and General Interest News). Van de Velde announced that sales in the first half of 2013 may be below those in the first half of last year, noting that “The consumer market continues to be very tough. In the first quarter of 2013 there were signs of falling sales throughout Europe among independent retailers (in excess of 4%).”

The Belgian intimate apparel firm wholesales under such brands as Marie Jo, Andrés Sardá and Prima Donna and operates retail stores under various names in different parts of the world, including Intimacy in the U.S.

In a statement from Ignace Van Doorselaere, CEO and Stefaan Vandamme, CFO, the firm explained “This hitch among consumers (economic crisis, bad weather) has a clear impact on follow-up orders and stayers in the spring. We felt there was a chance of turnover remaining stable in the first half year, but due to the circumstances outlined above it is possible that last year’s half-year turnover will not be matched.”

On the positive side, the company said “Pre-orders in the autumn are in line with last year’s figures, which is good in the current market conditions.”

For the full year, the Van de Velde admitted “we expect a slight decline in wholesale revenue.”

Among its retailers, the firm noted “The situation in retail is highly varied. In Germany Rigby & Peller shows good growth on a like-for-like basis. New stores have also opened this year in Cologne and Munich.” The company also said “Denmark’s first Rigby & Peller opened in Copenhagen last month.”

Addressing the situation at its troubled retail chain in this country, Van de Velde claimed “The fall at Intimacy (USA) has slowed down significantly compared with last year and the new marketing campaign will launch in May.”

“Rigby & Peller London experienced a tough quarter after a slight growth in 2012,” the report continued. “In the Netherlands Lincherie has been boosted by the acquisition of Donker stores (11 stores).” The firm explained that “Van de Velde already owned 50% of Donker stores, which it now wholly owns.”

“In Hong Kong two Private Shops have been converted into Rigby & Peller.”

In summary, Van de Velde stated that “It is not possible to forecast retail turnover, which depends on the speed of the turnaround in the USA and moving back into growth in the UK.” The firm concluded that “The above developments will most likely have a negative impact on EBITDA in 2013.”

more Financial and General Interest News >>

Published 05-29-2013 by Nick Monjo

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