Lingerie group Van de Velde starts to feel inflation

Belgian lingerie group Van de Velde continues its strong growth as consumers return to the shops. However, the impact of inflation is starting to show: Van de Velde’s bras will become 5 % more expensive this autumn.

Delayed rise

After strong growth last year, Van de Velde’s comparable turnover rose again in the first half of the year, climbing 21.5 % to 117.4 million euros. Sales climbed above the pre-pandemic level, new CEO Peter Corijn said with satisfaction, as consumers returned to the physical shops and they have started buying swimwear again now that they are allowed to travel. Both the group’s own retail channels and wholesale did well.

Profit increased even more: gross profit was 30 % higher at 37.8 million euros, net profit only grew a tiny bit slower at 26 % (to 22.9 million euros). The company explained to Belgian newspaper De Tijd that it has sold more products without discounts, as well as more expensive models with a higher profit margin. The exchange rate effects were also favourable.

It is remarkable that the owner of brands like Marie-Jo feels it can stave off the consequences of inflation to the second half of the year. Because of the long lead time of lingerie, inflation is felt with a delay. Van de Velde will only raise prices for the autumn collection: 5 % now and another 5 % next year. In itself, the group does not see any problem with this – “we are in the premium segment” – but “the big unknown is how consumers will react to high inflation and the loss of purchasing power”. The lingerie manufacturer therefore does not make any statements about the rest of the year.