(Filed Under wholesale Lingerie News). La Perla lost €136,366,000 (about $166 million at current exchange rates) on sales of €66,237,000 (about $81 million) in 2020.
In 2019 the company lost €89,041,000 (about $108 million) on sales of €85,821,000 (about $105 million).
The company explained that “the Covid-19 crisis significantly affected results in 2020. The pandemic brought disruption across the business from the closure of a majority of physical stores for extended periods to significant supply chain interruptions.”
While overall revenue declined 22.8%, “retail revenue declined 26%.” It added that “boutique and concession sales fell 31%, while outlets sales declined 45%, both primarily as a result of pandemic-related disruption.”
La Perla “online sales increased 32%,” and “wholesale revenue increased 5%, boosted by new accounts.”
“Other sales, which includes royalties, fell primarily due to transition of the La Perla fragrance business to direct operation. Revenue from La Perla Beauty was immaterial in the year as the business was in the start-up phase of operation.”
La Perla warned that “with continued uncertainty around the speed and extent of recovery from the Covid-19 pandemic and the impact on the Group’s plans, impairment assessments on the carrying value of non-current assets were undertaken using market growth indicators, which indicate lower levels of revenue growth than anticipated in the Group’s forward plans. Consequently, an impairment charge for the year of €53.6m has been recognized.”
“La Perla has concluded that the going concern basis of accounting in preparing the results for the year ended 31 December 2020 is appropriate, supported by La Perla’s financing arrangements which include a loan by Tennor Holding B.V. and La Perla Fashion Finance B.V. in the aggregate principal amount of up to €300 million, which does not mature over the next 12 months. The total amount outstanding under these loans stood at €204.6 million as of 31 December 2020, inclusive of €24.9m of accrued interest and €7m of accrued fees.”
The company continued, “given the ongoing Covid-19 crisis and the uncertainty in relation to further impact on the economy and consumer spending, the Group cannot adequately determine the future effect on its business. Therefore, La Perla is currently not providing forward guidance.”
La Perla also announce some personnel changes. “Imran Khan stepped down as managing director on the 31st December 2020. R.D. Salem stepped down as supervisory board member on the 26th May 2021 and is expected to be replaced by S. Kindler during the next annual general meeting taking place in June 2021.”
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