Flanders-based swimwear and lingerie maker Van de Velde saw sales and profits dip in the first half of the year, as bad weather turned off potential swimwear customers.
The company saw turnover fall by 5.1% in the first half of the year, to €116.2 million. Van de Velde's sales direct to consumers (especially online sales) increased by 11.1%, to €28.3 million, but sales to retailers fell by 9.4% to €87.9 million.
The manufacturer said that it saw a decrease in swim sales in the first half of the year, as the "unfavourable weather conditions led to lower sales in many stores".
The group's earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 15.1% to €31.9 million, due to rising wage costs because of inflation, as well as additional marketing costs.
Van de Velde's net profit for the first half of 2024 fell by 10.6% to €19.7 million.
CEO Karel Verlinde said that despite a "challenging spring for the fashion industry", Van de Velde "managed to sharpen [its] market position".
"The sales in the D2C [direct to customer] segment continue to grow consistently thanks to our marketing activation. Firm control of working capital leads to a growth in cash position," he said.
The company said it is confident about the second half of the year, but "remains vigilant in the current environment".
"The strong market position of our brands PrimaDonna and Marie Jo in both the Benelux and Germany provides us with a strong foundation for the future," it said in its half year update, adding that the launch of the Sarda brand "got off to a promising start".
Headquartered in the East Flemish village of Schellebelle, Van de Velde employs 1,500 people and is listed on the Belgian stock exchange (Euronext Brussels). The company reported a turnover of €212.1 million last year.
During the pandemic, the manufacturer briefly pivoted to producing hospital aprons and face masks.
