Van de Velde FIRST LOOK: Weather conditions led, as expected, to lower sale

In 1H24, Van de Velde experienced a decrease in swim sales. The unfavourable weather conditions led, as expected, to lower sales in many stores.
On a comparable basis (including comparable seasonal deliveries), the 1H24 turnover decreased y/y 5.1%to € 116.2m. The reported turnover decreased -6.1% y/y to € 113.3m, a little softer than we expected. But profitability (EBITDA-margin) was above our FY target (1H24 EBITDA margin 26.5% while we expect FY24E EBITDA margin of 26.4%). This EBITDA evolution is the result of a turnover decrease combined with additional marketing activation and rising wage costs due to inflation.
We maintain our Buy and € 40 TP as Van de Velde approaches 2H24 with confidence, even though Van de Velde remains vigilant in the current environment. The strong market position of its brands PrimaDonna and Marie Jo in both the Benelux and Germany provides them with a strong foundation for the future. We were happy to read that the launch of the Sarda brand got off to a promising start. So, Van de Velde is sharpening its market position in challenging spring for fashion industry.