Income taxes were higher compared with the previous year. The recurring Group profit declined from EUR 41 million to EUR 33.6 million. “The 2016 result was obtained in a challenging environment and quite a few challenges are ahead of us in 2017 too,” the company explained.

REBITDA growth

However, despite tough retail climate and Brexit effect, Van de Velde also realised REBITDA growth of 2.6% in 2016. On comparable basis, it rose from EUR 60.4 million to EUR 62 million. Reported consolidated REBITDA was EUR 61.9 million, which is at the same level as the previous year.

This development is primarily due to the following factors, including solid turnover growth of wholesale resulting in a higher gross margin, increases in fixed costs, mainly related to sales-driving costs, and contribution to profit of the retail business at the same level as the previous year, despite lower turnover.

Consolidated turnover

On a comparable basis, including comparable season deliveries, consolidated turnover grew slightly from EUR 206.7 million to EUR 206.8 million (turnover on comparable basis grew by 1.2% at constant exchange rates).

Reported consolidated turnover of Van de Velde in fiscal year 2016 declined by 1.1%, from EUR 209 million to EUR 206.6 million. This turnover development consisted of the following components:

• Growth of wholesale turnover of 4.4%. Growth continued in both lingerie and swimwear. Pre-orders increased but back-orders stagnated. At constant exchange rates, growth was 5%, mainly as a result of the weakening of the British pound.
• Retail turnover declined by 15.6%, driven by growth of retail turnover in Europe on a comparable basis at constant exchange rates by 3.7% and the decrease in retail turnover in the US on a comparable basis at constant exchange rates by 20.2%.

Van de Velde

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

www.vandevelde.eu