Belgian lingerie manufacturer Van de Velde saw its profit take a hammering in its fiscal year 2016 due to certain problems in China. Earlier the company had already released its first first turnover decrease in nineteen years.
Continued American problems
Van de Velde had published a 1.1 % turnover drop, to 206.6 million euro, its first turnover drop in 19 years, which came on the back of disappointing sales in the United States. Van de Velde’s American subsidiary chain, Rigby & Peller, saw its turnover decrease by a fifth. A weak British pound also meant the company struggled in the UK market, despite strong sales. Ignoring exchange rate fluctuations, turnover would have remained stable.
The weaker turnover results have also had its impact on Van de Velde’s profit: operating profit dropped 0.1 % to 53.6 million euro, but net profit was hammered 18 %, down to 33.6 million euro. Its Chinese joint venture Private Shop suffered bigger losses and the Hong Kong textile manufacturer Top Form did not contribute as much profit as before.
