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24th February 2015, Schellebelle

Van de Velde expects continued growth in 2015

Van de Velde, a Belgium based leader in the luxury and fashionable women’s lingerie sector, has reported a decline of EUR 0.4 million in the group’s financial results in 2014 compared with a previous year.

Income taxes were higher compared with the previous year. The recurring profit rose from EUR 32.9 million to EUR 33.9 million (3.2%) and the recurring profit per share rose from EUR 2.47 to EUR 2.55 (3.2%). When the non-recurring components are included, the fall in the group’s profit is 92.2%.

Turnover growth 2014

Consolidated turnover at Van de Velde rose by 8.7% in 2014 (from EUR 182.4 million to EUR 198.4 million). On a like-for-like basis, consolidated turnover was up by 7.2%. This turnover growth consisted of several components.

Intimacy recorded negative consolidated REBITDA for the first time in 2014.

The 9.6% growth in wholesale turnover is driven by the very successful launch of PrimaDonna Swim and the strong growth in lingerie. A fall in retail turnover at Intimacy by 16% in local currency also contributed to the growth.

As well as that, the 20.3% rise was recorded in retail turnover in continental Europe, especially due to strong like-for-like growth in Germany (14.8%) and the Netherlands (14.3%). Furthermore, the one-time Donker stores are included over 12 months in 2014 versus 9 months in 2013.

A rise in retail turnover at Rigby & Peller in the UK by 6.8% (1.6% on a like-for-like basis) in local currency was also one of the factors.

REBITDA development

Consolidated REBITDA was EUR  57.7 million, 18.6% higher than the previous year. On a like-for-like basis (including comparable deliveries), REBITDA rose by 14.8%. This is primarily due to the several factors.

The strong turnover growth in wholesale contributed to the situation. The gross margin in wholesale is slightly higher on an annual basis compared to the previous year, mainly due to a positive price impact. Also, strict cost constraints ensured that cost rises were limited without threatening strategic projects.

The retail division’s total REBITDA contribution was lower than in 2013, exclusively due to the less strong performance of Intimacy. The REBITDA contribution of all other retail chains (Europe, UK, Far East) increased.

Intimacy recorded negative consolidated REBITDA for the first time in 2014. The targets were not achieved and Intimacy’s performance also fell short of the targets set when the majority stake was acquired in 2010.

Outlook

Total pre-orders for Spring/Summer 2015 are higher than in 2014, the company reports. Van de Velde accordingly expects growth in the wholesale division in the first six months of the year.

Retail forecasts are always very difficult because the retail sector often has a short-term mindset. The company believes that growth will continue in the Netherlands and Germany, as well as in the UK, although the manufacturer admits that this is more difficult to achieve than on the continent.

www.vandevelde.eu

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