Belgian lingerie producer Van de Velde has had a solid first half of the year, but the performances of its American chain Intimacy still put pressure on the results of the entire group.
Decline by a quarter in the US
The consolidated revenue of the group rose by 0.5 percent to 113.9 million euros in the first half of 2016 and on a like-for-like basis Van de Velde made a progress of 2.7 percent. The recurrent EBITDA went up by 2.5 percent to 37.3 million euros.
The American activities however remain a drag on the growth of the company: Van de Velde acquired Intimacy in 2007, but has yet to succeed in putting it on the right track. Revenue in the United States dropped by 27.7 percent, partly due to store closings, but even on a like-for-like basis there was a sharp decline of 17.7 percent.
The question remains how long Van de Velde will continue to push on with the American chain. Last year all stores were converted to Rigby & Peller, the best-known brand, but even that does not seem to have a positive effect. So it is not unthinkable Van de Velde will soon try to offload its American activities.
