Belgian lingerie manufacturer Van de Velde, best known for its Marie Jo and PrimaDonna brands, expects its 2017 financial results to come under pressure. The company immediately announced additional investments to stimulate growth.
Stabile turnover forecast
“As a consequence of the challenging retail environment in the markets and channels where Van de Velde is traditionally active and the negative effect of the evolution of the British pound, Van de Velde expects that total turnover in 2017 will not grow compared to 2016”, the company revealed in a trading update. This was not exactly encouraging news, especially following the revelation that it suffered a turnover drop for the first time since its IPO nineteen years ago.
The company will not sit idly by however as it immediately announced new investments to improve growth. It will focus on the “positioning of its brands & marketing and development of new channels, on the development of eCommerce & digital and on an increase of the agility and delivery reliability of the supply chain”, the Schellebelle-based company said.
“These investments in the future will result in higher expenses in 2017 and 2018”, Van de Velde warns. It also points out that the measures taken will “translate into sustainable growth of turnover and profitability of Van de Velde in the coming years.”
