(Filed Under wholesale Lingerie News). In the six months ended June 30, La Perla lost €41.3 million (about $48.8 million at current exchange rates) on sales of €27.5 (about $32.5 million), compared to a loss of €44.5 on sales of €40.3 in the six months ended June 30, 2019.

The company explained retail revenue declined 37%, “approximately 33% on a like-for-like basis,” while “e commerce outperformed physical boutiques and concessions, up high teens.” It added that “Asia outperformed both EMEA and North America.” Retail sales are by far the largest segment for La Perla, totaling €22.7 million in the period (down from €36.2 million in the same six months last year).

On the wholesale side, “revenue increased approximately 40%, largely driven by improved first quarter performance against poor deliveries in the previous year. Gross margin increased from 42% to 50%, benefiting a reversal of inventory provisions and a greater proportion of full-price sales, partially offset by increased inventory clearance activity, in the 2020 period relative to 2019.” In total, wholesale sales were €4.6 million in the first half, up from €3.4 million in the same period last year.

La Perla Fashion Holding N.V. stated that “operating expenses decreased from €38.7 million in the 2019 period to €34.9 million in 2020. This was driven by reduced marketing and selling expenses largely related to store closures, partially offset by increased G&A expenses due to incremental IT investment and the initial operating expenses of La Perla Beauty.”

Summarizing the period, the company complained that “although management was encouraged by a continuation of the second half of 2019’s positive trends during the first few weeks of 2020, the Covid-19 crisis significantly affected results during the first half of 2020. The pandemic brought disruption across the business from the closure of a majority of physical stores for extended periods to supply chain interruptions.”

The firm concluded, “among others, La Perla’s financing arrangements include a loan by Tennor Holding B.V. and La Perla Fashion Finance B.V. in the aggregate principal amount of up to €250 million, which does not mature over the next 12 months. The total amount outstanding under this loan stands at €161.2 million as of 30 June 2020, inclusive of €16.4m of accrued interest and €5.7m of accrued fees.” — NM

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Published 11-23-2020 by Nick Monjo