La Perla Fashion Holding N.V.
Registered office: Schiphol Boulevard 127, G4.02, 1118 BG Schiphol, the Netherlands
October 29, 2020
Interim results for the six months ended 30 June 2020
La Perla Fashion Holding N.V. (“La Perla” and together with its consolidated subsidiaries, the “Group”), a luxury fashion holding company incorporating La Perla, a leading designer, manufacturer and retailer of luxury lingerie, nightwear and swimwear, and La Perla Beauty, announces results for the six months ended 30 June 2020.
Financial Overview – Consolidated La Perla Group
|€ 000 unless stated||Six months ended 30 June 2020|| |
Six months ended 30 June 2019 (1)
|Gross profit margin (%)||50||42|
|Profit/(loss) for the year||(41,300)||(44,482)|
|Earnings (loss) per share in €||(0.3852)||(0.4305)|
|Net cash generated from operating activities(3)||(19,544)||(25,898)|
|Total non-current liabilities||240,084||218,037|
|Total current liabilities||66,301||58,691|
|Cash and cash equivalents||5,862||11,443|
|Net financial debt(4)||155,800||121,218|
|Liabilities related to IFRS 16(5)||90,057||99,112|
- Reflects adoption of IFRS 16 during the period.
- EBITDA is calculated as Operating Profit/Loss before amortization and depreciation and write-offs
- Lease payments of €8.8 million in HY 2020 and €12.9 million in HY 2019 (restated) are categorized under Cash flow from financing activities
- Net financial debt calculated as Long term borrowings plus Short term borrowings minus Cash and cash equivalents. It excludes Financial lease liabilities
- Refers to Financial lease liabilities
Although management was encouraged by a continuation of the second half of 2019's positive trends during the first few weeks of 2020, the Covid-19 crisis significantly affected results during the first half of 2020. The pandemic brought disruption across the business from the closure of a majority of physical stores for extended periods to supply chain interruptions.
Revenue declined 32%, from €40.3 million to €27.5 million. By channel:
- Retail revenue reduced 37%, approximately 33% on a like-for-like basis
- Ecommerce outperformed physical boutiques and concessions, up high teens
- By region, Asia outperformed both EMEA and North America
- Wholesale revenue increased approximately 40%, largely driven by improved first quarter performance against poor deliveries in the previous year
Gross margin increased from 42% to 50%, benefitting a reversal of inventory provisions and a greater proportion of full-price sales, partially offset by increased inventory clearance activity, in the 2020 period relative to 2019.
Operating expenses decreased from €38.7 million in the 2019 period to €34.9 million in 2020. This was driven by reduced marketing and selling expenses largely related to store closures, partially offset by increased G&A expenses due to incremental IT investment and the initial operating expenses of La Perla Beauty.
Depreciation, amortization and write-off decreased from €14.0 million in the 2019 period to €10.1 million in 2020. The reduction was primarily a product of rent concessions and a smaller store portfolio in the 2020 period.
The improvement in operating loss resulted from the above factors.
Outlook, Going Concern and Financing
Given the ongoing Covid-19 crisis and the uncertainty in relation to further impact on the economy and consumer spending, the Group cannot adequately determine the future effect on its business. Therefore, La Perla is currently not providing forward guidance. However, La Perla has concluded that it is appropriate to adopt the going concern basis of accounting in preparing the interim results for the six months ended 30 June 2020. Among others, La Perla's financing arrangements include a loan by Tennor Holding B.V. and La Perla Fashion Finance B.V. in the aggregate principal amount of up to €250 million, which does not mature over the next 12 months. The total amount outstanding under this loan stands at €161.2 million as of 30 June 2020, inclusive of €16.4m of accrued interest and €5.7m of accrued fees.
The accounts can be viewed in full at the following link: https://laperlafashionholding.com/financial-reports-presentations/
Seven Dials City, Simon Kelner / James Devas
Tel: +44 (0) 203 740 7483
About La Perla:
La Perla Fashion Holding N.V., a luxury fashion holding company, is the direct shareholder of La Perla Global Management (UK) Limited and its subsidiaries (the “Operating La Perla Group”) and La Perla Beauty (UK). La Perla, through the Operating La Perla Group, is a leading designer, manufacturer and retailer of luxury lingerie, nightwear and swimwear. La Perla Beauty is in the initial phase of operation. The group operates under the brand “La Perla”. Founded in 1954 in Bologna, Italy, the brand is renowned for its heritage and craftsmanship.
This release may contain forward-looking statements, i.e., statements that do not relate to historical facts or events. By their nature, forward-looking statements involve known and unknown risks and uncertainties, both general and specific. La Perla Fashion Holding N.V. bases these statements on its current plans, estimates, projections and expectations and they relate to events and are based on current assumptions that may not occur in the future. These forward-looking statements may not be indicative of future performance; the actual outcome of the financial condition and results of operations of La Perla Fashion Holding N.V. and its consolidated subsidiaries, and the development of economic conditions, may differ materially from, in particular be more negative than, those conditions expressly or implicitly assumed or described in such statements. Even if the actual results of the La Perla Fashion Holding N.V. or its consolidated subsidiaries, including the financial condition, results of operations and economic conditions, develop in line with the forward-looking statements contained in this press release, there can be no assurance that this will be the case in the future.