Intimacy heavy burden on Van de Velde | RetailDetail

Intimacy heavy burden on Van de Velde

Intimacy heavy burden on Van de Velde

Lingerie producer Van de Velde will evaluate whether it has to lower the balance sheet value of Intimacy, an American chain, because the channel’s sales dropped considerably and it might have breached credit card regulations on several occasions.

American sales below expectations

In 2007, Van de Velde bought a 49 % stake in Intimacy, which it enlarged in 2010 to 85 % with an option to buy the remaining 15 %, but Intimacy sales are well below the expectations as the 2013 turnover dropped a little over 12 %. Nevertheless, those were encouraging numbers considering the drop in like-for-like turnover was smaller in the second part (- 4.8 %) than in the first part of 2013 (- 11 %).

Intimacy has also been summoned for alleged breaches of the credit card legislation in America, because there is a dispute about which credit card details can be placed on a receipt. The case is still only being investigated, but Van de Velde has stated that customers have not been disadvantaged at all.

The chain, located in Schellebelle, is now waiting to see how things evolve. “The impact on the carrying value of the Intimacy brand name and goodwill will be examined when the figures are compiled for the first six months of the year”, a press release stated.

Profit 25 % higher

Van de Velde’s numbers for 2013 showed that it performed admirably in the past year, with a 0.4 % turnover increase compared to 2012, to 182.4 million euro. An expensive euro, which caused currency exchanges to negatively affect the numbers, and Intimacy’s issues were a setback.

Despite all this, net profit grew 24 % to 31.8 million euro, but in 2012 it had to recognize an 8 million euro impairment on goodwill and the Andres Sarda brand name. Shareholder dividends are maintained at 2.15 euro per share.

Promising start to 2014

Van de Velde sees promising things for wholesale in the first six months of 2014 with a light growth in lingerie preorders, even for Andres Sarda. PrimaDonna’s recently-launched Swim collection is also putting up excellent numbers.

Retailwise, Van de Velde is looking towards Great Britain, Germany and Asia where it hopes to expand Rigby & Peller, whereas the Netherlands will get more of the Lincherie concept.

Questions or comments? Please feel free to contact the editors

Spar makes ambitious entry into Greece


Spar International has set its sights on Greece as the next country to conquer and lead as the foremost independent food retail chain. Spar Hellas will cooperate with Asteras and Mesis to develop more than 500 Spar stores over the next four years.

Dr. Oetker buys half of Freixenet


Henkell, which is Dr. Oetker’s drinks division, has acquired slightly more than half of cava brand Freixenet’s shares. Following two years of negotiations, both companies struck a deal, even though the German food giant will not reign supreme at Freixenet.

Picnic confirms German arrival


There had been rumours that Dutch online supermarkets Picnic was trialing in Germany, news its co-founder Michiel Muller has now confirmed.

Délifrance joins FFC's portfolio


Dutch Franchise Friendly ConceptsDélifrance Benelux acquisition is in full swing. The franchise organization will obtain the French sandwich chain’s Benelux master franchisee on 1 April.

IKEA has developed actual "bug burger"


SPACE10, furniture giant Ikea’s innovation lab, will present a healthy alternative to the classic hamburger, where the meat is replaced by red beets and mealworm. It is also working on a “dogless hotdog”;

Supermarkets' price difference with neighbouring countries grows


Belgian supermarkets are increasingly more expensive than those in neighbouring countries according to Prijzenobservatorium’s research. Shoppers in France, Germany and the Netherlands quickly pay 10 % less.

Back to top