OVS reports 68 percent drop in Q1 sales

The first quarter from February to April 2020, OVS S.p.A. said, was adversely affected by the lockdown period, which entailed the closure of all stores from March 12, with full reopening only taking place on May 18. Net sales for the quarter amounted to 102.7 million euros (115.7 million dollars), down 68 percent due to the period of closure. The company added that EBITDA amounted to negative 34 million euros (38.3 million dollars), affected by the sharp fall in sales. The company’s net financial position was 428.8 million euros, which OVS said, is better than the one at April 30, 2019.

“In a quarter in which our stores were closed for almost two months, the company reacted as swiftly as possible to decrease costs. Our strong containment measures will allow us to lower the break-even point even further. Our company is also reviewing rental contracts: where cooperation with the property owners is not possible, we are prepared to terminate the existing lease agreements and move stores to other locations,” said the company’s Chief Executive Officer, Stefano Beraldo in a statement.

“On the basis of this sales trend, which is above our expectations, we believe we are well positioned to face any further possible health crises in countries where our manufacturers operate, causing their activities to slow. As anticipated, our positioning will allow us to carry forward the goods purchased this year to next year. This will support a substantial recovery of working capital in the first half of 2021, maintaining a good gross margin,” Beraldo added.

Under OVS and UPIM brands, the company operates over 1,750 stores in Italy and overseas.

Picture:Upim website