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Organic rise in turnover, Van de Velde NV
Feb '11
Van de Velde group's organic turnover excluding Intimacy's retail turnover rose 7.3% to €150.4 million. This rise in turnover was primarily due to a rise in volumes in all countries. Higher exchange rates also had a positive impact. If Intimacy retail turnover is included (from May 2010), Van de Velde's consolidated turnover was €166.3 million, a rise of 18.7% compared to 2009.

Including Intimacy means that the holding in Intimacy is recognised in accordance with the full consolidation method at 85% (after the end of April 2010).

For the full year 2010 Intimacy generated turnover of $35.5 million, a rise of 27.5% compared to 2009. Four new stores opened in 2010. HIGHER GROSS MARGIN The rising gross margin is proof that Van de Velde is successfully pursuing its trading-up strategy (high quality, high service) even in tough economic conditions. The gross margin was also positively impacted by better exchange rates and the continued efforts in terms of production costs. The gross margin is at an historical high in 2010 and above group targets.

Cost savings generated in 2009 had a positive impact on recurring EBITDA. Excluding Intimacy, this rose more sharply than turnover to €51.7 million in 2010, up 16.9% compared to 2009. Recurring EBITDA including Intimacy was €52.3 million. On an annual basis Intimacy's EBITDA was $1.4 million.

The financial result was significantly better than in 2009 when it was strongly impacted by the write-down on the CDO portfolio of €1.2 million. The results accounted for using the equity method were slightly positive in 2010. This is primarily due to the contribution of Top Form (after adjustment for paid dividend) and Intimacy (first four months of 2010). The financial result including Intimacy takes account of one-off income of €4.3 million recognised in the full consolidation of Intimacy.

Growth is expected in the first six months of 2011 (spring collection). Sales of the 2011 autumn collection are more difficult due to slower in-store sales to consumers in autumn 2010. Sales are currently slightly down on last year. It is still too early (by a few months) to forecast turnover for the second half of 2011.

Intimacy plans a further expansion of the number of stores in 2011: from 13 stores at the end of 2010 to 16 or 17 stores by the end of 2011.

Apart from Intimacy, the retail activities will be developed further with the rollout of Oreia in Germany and LinCHérie in the Netherlands. Increased costs in a number of areas are factored in for 2011, primarily in production (China) and marketing (increased sales efforts). As a result, the gross margin will be slightly lower than in 2010.

Strategy continues to focus on the fitting room (“shape the body and mind of women”) and trading up (service culture and brands) in both key and growth markets.

VAN DE VELDE Van de Velde NV is a leading player in the luxury and fashionable women?s lingerie sector. Van de Velde is convinced of the merits of a long-term strategy based on developing and expanding brands around the Lingerie Styling concept (fit, style and fashion), especially in Europe and North America.

Van de Velde NV

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