(Filed Under wholesale Lingerie News). Van de Velde earnings in 2020 fell 30.6% while sales dropped 22.1%.
The Belgium-based company owns the Marie Jo, PrimaDonna and Andres Sarda wholesale brands, as well as international retail chains including the Rigby & Peller (formerly Intimacy) stores in the U.S.
The company reported a profit of €14.7 million (about $18.0 million at current exchange rates) on sales of €152.3 million (about $186.3 million) for the year ended December 31, 2020, compared to earnings of €21.2 million (about $25.9 million) on sales of €195.5 million (about $239.2 million) in 2019.
For the year, store sales in “the U.S. was down 57.3%,” the company reported, adding that worldwide, “in 2020, six non-profitable stores in our own store network were closed. The number of stores in the U.S. has decreased from nine to six, the two stores in Denmark were closed as well as one store in Germany. Several lease contracts were successfully renegotiated.” As we went to press, the U.S. Rigby & Peller website actually lists only five stores: two in Manhattan, and one each in Chicago, Atlanta and Boston.
Van de Velde reported varying retail results across Europe. “The retail turnover (own store network) in 2020 decreased by 36.6% to €22.3 million. In Europe, turnover fell by 26.8%.” It added that “in the first half of the year, turnover fell by 42.0%. Due to the COVID-19 pandemic, stores were closed from mid-March through May or June, depending on the country. In the second half of the year, turnover fell by 30.7% and we see a stronger recovery in NL and DE than in the UK and U.S. The stores in DE and NL have a more suburban location, and clearly perform better than those in shopping centers and busy shopping streets. The sales recovery in the second half of the year was held back by the lockdown measures at year-end in NL, DE and UK.”
Speaking about the wholesale component of its business in 2020, Van de Velde stated, “in the first half of the year, there was a 23.5% decline in turnover as a result of the store closures from mid-March in all markets. The turnover decline in the second half of the year was 2%. In the second half of the year there was a strong recovery in turnover in the most important countries and markets, in the other countries the recovery was more limited. Turnover in E-commerce grew significantly at our independent retail partners and on the brand sites.” — NM
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