• Profit of EUR19.9m, down 11.9% from EUR22.6m 
  • Turnover edged down 1.8% to EUR97m from EUR98.7m
  • Comparable store sales fell by 2.5%

Lingerie group Van de Velde has reported an 11.9% decline in first-half profit, with higher costs, lower sales, and a drop in wholesale turnover and gross margin all to blame.

Net profit stood at EUR19.9m (US$26.3m) for the first six months of the year to 30 June, compared to EUR22.6m in the same period of last year.

Turnover edged down 1.8% to EUR97m from EUR98.7m in the prior year, while comparable store sales fell by 2.5%.

Although retail turnover of the Intimacy brand fell more than 11%, retail turnover of the Rigby & Peller label in Europe increased by 14%, thanks to strong growth in Germany. In the UK however, Rigby & Peller posted a 1.5% drop due to a weaker British pound.

Van de Velde expects its performance in the second half to be better than in the first half, forecasting slight growth in recurring EBITDA and wholesale turnover.

The development of retail turnover is difficult to predict, it added, but noted that cost reductions are spread over the whole company.