“The profit tax was lower compared to the same period last year, both due to lower profit before tax and, above all, because of a lower effective tax rate of 28.6%, compared to 36.4% during the same period last year,” the company explained.

“In 2018, we aim to restore the turnover growth to the historic average, partly with the introduction of Marie Jo Swim and the impact of the initiatives that were set up in 2017. The scalable platform we are building will entail a further marked increase in costs and investments in 2018. While this will put pressure on profit development, the Board of Directors and management fully support these initiatives to achieve future growth.”

Turnover development

On comparable basis, including comparable season deliveries and at constant exchange rates, the turnover increased by of 0.2%. Taking the negative exchange rate effect into account, the consolidated turnover decreased by 0.6% to EUR 205.6 million.

In wholesale, turnover on comparable decreased slightly by 0.1% at constant exchange rates. A decrease in lingerie was compensated by growth in the swim and sports collections. Taking the negative exchange rate effect into account on the one hand and the positive effect of higher deliveries of the spring/summer collection, the reported turnover increased by 1.6%.

In retail, turnover on like-for-like store basis at constant exchange rates increased by 4.2%. This is due to growth in Europe in all countries and a limited decline in the US. Taking the negative exchange rate effect and the effect of closure of lossmaking stores into account, reported turnover decreased by 0.9%.

Decrease by 10.1% of reported EBITDA

The reported EBITDA decreased by 10.1%, from EUR 61.9 million to EUR 55.7 million in the fiscal year 2017. On a comparable basis, the consolidated EBITDA decreased by 13.9%, from EUR 62 million to EUR 53.5 million. The main reasons for the decline in EBITDA are:

Wholesale: The contribution to reported EBITDA decreased by EUR 1.3 million. On a comparable basis, the contribution of wholesale decreased to EUR 3.5 million due to the higher deliveries of the spring/summer collection.

Retail: The contribution to reported EBITDA increased by EUR 0.2 million as a result of positive turnover development on like-for-like shop basis combined with closure of lossmaking stores.

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