Home / Knowledge / News / Apparel/Garments / Van de Velde EBITDA declines to €28.5mn in H1 2018

Van de Velde EBITDA declines to €28.5mn in H1 2018

03
Sep '18
Courtesy: Van de Velde
Courtesy: Van de Velde
Van de Velde, one of the global leaders in lingerie, swimwear and sportswear, is continuing with the implementation of the strategic plan which has resulted in decline of EBITDA by 21.5 per cent to €28.5 million in the first half (H1) of 2018. Turnover declined by 2.3 per cent to €114.2 million, or a decline of 0.6 per cent at constant exchange rates.

During January-June 2018, the consolidated turnover at Van de Velde declined by 3.9 per cent from €115.3 million to €110.9 million compared with the year before.

“The fashion retail market was under pressure in our core markets globally in the first half of the year. The lower number of people in high streets and the change in shopping behaviour had a negative impact of up to more than 2 per cent on retail turnover. Within this context our brands have held up well, we experienced a successful launch of Marie Jo Swim and we saw growth in the new distribution channels. This confirms that the rollout of an omnichannel approach with a central role for speciality boutiques is very important. To develop the different aspects of that omnichannel approach, Van de Velde has set up working groups of speciality boutique owners. This is a unique approach,” said Erwin Van Laethem, CEO of Van de Velde.

The contribution of wholesale to EBITDA on a comparable basis decreased by €6.2 million in H1 2018. “The fall within wholesale is the consequence of lower turnover, combined with a lower margin and higher sales and marketing costs. The contribution to reported EBITDA fell by €7.2 million, because of more spring/summer 2018 deliveries at the end of last year, which resulted in strong delivery reliability,” the Brussels headquartered company said in a press release.

The retail contribution to reported EBITDA rose by €0.7 million. The rise in the profit contribution is the result of steady turnover, improved margins and the closure of loss-making stores.

“Van de Velde continues to invest in a scalable platform for future growth. These costs put pressure on profitability in the short term. The initiatives are being rolled out on schedule. Delivery reliability in the first half of 2018 was better than ever before. The ICT hardware was upgraded successfully. The development of the new ICT and e-commerce functionalities and the raising of process efficiency are ongoing,” said Bart Rabaey, CFO of Van de Velde.

In terms of prospects, Van de Velde expects a modest decrease in turnover on a comparable basis over the year as a whole. “This is expected to result in a very strong profit decline in comparison with historic results (based on comparable EBITDA) of Van de Velde in 2018, as a consequence of the expenditures with regard to the initiatives for future growth,” the company said. (RKS)

Fibre2Fashion News Desk – India


Must ReadView All

EU mulls imposing tariffs on Cambodian garments

Apparel/Garments | On 12th Nov 2018

EU mulls imposing tariffs on Cambodian garments

The European Union is mulling over imposing tariffs on Cambodian...

Courtesy: Lenzing

Textiles | On 12th Nov 2018

Lenzing reports solid result in FY18 first half

Lenzing's strategic orientation with a focus on specialty fibres has...

Courtesy: Invista

Textiles | On 12th Nov 2018

Invista’s Texas site sets adiponitrile production record

Invista’s site in Orange, Texas, has set a 12-month production record ...

Interviews View All

Darshan Mehta, Infinium Polychem

Darshan Mehta
Infinium Polychem

We are spending double digit figures on R&D

Asim Dalal, Indo Count Retail Ventures

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

C Dhandayuthapani,

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Marcello Galvanin,

Marcello Galvanin

Galvanin has more than 50 years of experience in the production of textile ...

Gagan Gulati,

Gagan Gulati

PG Silk Mills Private Limited had a humble start with a hand-dyeing unit....

Matthew Kolmes, Supreme Corporation

Matthew Kolmes
Supreme Corporation

Supreme Corporation manufactures innovative specialty yarns and safety...

Johan Berlin, Investkonsult Sweden AB

Johan Berlin
Investkonsult Sweden AB

Investkonsult Sweden AB are consultants in the nonwoven and absorbent...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Ritu Kumar, Label Ritu Kumar

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella, Prathyusha Garimella

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


November 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search