The European Lingerie Group has reported a 9.3 per cent drop in sales for its third quarter following the closure of some of the group’s retail outlets. The results were also impacted by accounting estimates made back in the third quarter of 2018 which led to weaker profitability for the current reporting period.
ELG also confirmed that it was continuing with the implementation of its vertical integration process. In 2019, the Group’s new product lines, including the new brand Senselle by Felina, Felina 1885 and Felina swimwear, began to report solid volumes with the contribution of these new products to total sales expected to be visible in the next quarter.
“As the transformation of the retail channels in Southern and Central Europe still continues and the economy is slowing down in most European markets, which limits the recovery speed to some extent, the sales results of Q3 2019 for European Lingerie Group were lower than previous year,” the company said. “Additional temporary reduction in the lingerie segment revenue in Q3 2019 was a result of delays in shipments, which shifted part of the revenue to Q4 2019.
Total sales for the quarter were amounted to €18.8 mn, while there was also a 0.5 per cent decrease in sales for the first nine months of 2019 to €58.8 mn, mainly attributable to a decrease in the lingerie segment, while textiles were slightly above last year.
Third quarter 2019 sales demonstrated a decrease in both segments which is expected to be partially recovered in fourth quarter 2019. The continuing decrease in revenue is explained mainly by the general economic slow-down in the Western Europe and poor performance of the lingerie retail sector. Additional temporary reduction in the lingerie segment revenue in third quarter 2019 was a result of delays in shipments, which shifted to fourth quarter 2019.
ELG produces lace and fabrics for some of the market’s largest lingerie brands under the Lauma Fabrics brand name, and medical textiles under the Lauma Medical brand. It also designs, manufactures and distributes branded premium lingerie garments under Conturelle, Felina and Senselle brands. ELG also owns Dessus-Dessous, the largest online retailer of lingerie and swimwear in France. Headquartered in Sweden, it operates its own production facilities in Latvia, Hungary and Germany and has customers across 46 counties worldwide.
