Van de Velde’s first half turnover declines by 3.9 percent

In the first half of the year of 2018, the consolidated turnover at Van de Velde, the company said, declined by 3.9 percent to 110.9 million euros (128.6 million dollars) compared with the year before. On a comparable basis, the consolidated turnover declined by 2.3 percent to 114.2 million euros (132 million dollars), while at constant exchange rates, comparable turnover decreased by 0.6 percent.

“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 percent on retail turnover. Within this context our brands have held up well, we experienced a successful launch of Marie Jo Swim and saw growth in the new distribution channels,” said Erwin Van Laethem, CEO of Van de Velde in a statement.

Van de Velde’s H1 turnover declines

The company added that the turnover trend consisted of the following components. The comparable turnover of the first six months of 2018 in wholesale (including comparable season deliveries) fell by 2.9 percent and by 1.4 percent at constant exchange rates. The fashion collection performed well, posting growth, while the stayer products experienced a tough first half of the year. Marie Jo performed well, due to the successful launch of the swimwear collection.

Retail turnover in the first half on a like-for-like store basis rose by 0.6 percent compared with the same period in 2017 and by 4.3 percent at constant exchange rates. Turnover grew by 7.2 percent in Europe, but fell by 1.6 percent in the United States. As a consequence of the closure of loss-making stores, the total reported turnover of retail rose slightly by 0.1 percent.

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Van de Velde’s comparable EBITDA drops to 28.5 million euros

Van de Velde reported EBITDA decline in the first half by 25.1 percent compared with the same period last year, to 26.4 million euros (30.6 million dollars). On a comparable basis, the consolidated EBITDA fell by 21.5 percent to 28.5 million euros (33 million dollars).

“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,” added Bart Rabaey, CFO of Van de Velde to the statement.

Picture:Marie Jo website