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On Monday, publicly owned Van de Velde NV reported that sales from the Marie Jo, Marie Jo L'Aventure and Prima Donna brands rose Ten percent in 2005 to $135.Two million. Profit increased 10 consecutive many years to $26.6 million subsequent 2004, therefore the stock price rose 30 percent in 2005 to $186a share, prompting superlatives from financial analysts. In Brussels trading yesterday, it closed at $205.11, up 1.4 percent.
"Lingerie companies either did fashion or they did fit," he stated. "We said, 'Why don't we combine our match fashion and create a product no one else has?' "
As Van De Velde efforts to broaden its appeal outside Belgium, France, Germany and Luxembourg which be the reason for 75 percent of sales the small independent lingerie stores which may be its main sales outlets come in decline. It happens to be seeking compensate by opening its stores but until now is helpless to make money utilizing the outlets, this company says.
One of his first challenges, Doorselaere said, will be to help modernize independent lingerie stores or replacing people closed if the retiring owners would not pick an appropriate successor. Van De Velde furthermore has opened eight branded shops in Germany and France, targeting cities where you can find too little independent stores to keep up a business or company presence.
Still, analysts generally remain impressed, citing its strong balance sheet, with zero debt, with its earnings heritage.
While product design, quality control and distribution remain headquartered in Schellebelle, assembly is right now almost wholly outsourced. Up to 50 % its production was in China, with 24 percent in Hungary and 22 percent in Tunisia for Five percent still in Belgium.
"Not many manufacturers target highend inside the lingerie market thanks to the smaller customers and labor intensity," said Kerstin Herbert, an analyst at Dexia SA. "The basic gps is not cheap." A Marie Jo braand briefs retails for approximately $120.
Since Margaretha Van de Velde started stitching corsets along at the family home in Flanders after Wwi, the merchant is continuing to grow to generally be one of these top names in Europe's $1.25 billion luxury lingerie market.
Its Belgian operations look into design, testing and exacting final touches. In doing what was once the trunk garden of your Van de Velde home, stretching machines test the materials' endurance and washers repeatedly wash, spin and dry martial arts to be sure of for shrinkage and weathering.
The Marie Jo brand developed three decades ago. In 1997, Van de Velde listed its shares around the Brussels stock exchange.
Belgian Lingerie Maker Titans Spread Its Brands
Van de Velde's success shows how highcost European textile companies can ward off products from lessexpensive Asian rivals by carving out niches from your luxury market. It faces retail competition from Italy's La Perla and from France's Chantelle Group, LeJaby SAS and Lise Charmel, nevertheless when you see the exception of one's Parisbased Christian Dior, few major French or Italian couturiers or luxury powerhouses choose the market attractive.
The firm this past year named Ignace Van Doorselaere ceo, the primary from outside reused .. His assignment is expand the business into southern Europe and in addition the U . s, which is answerable to just 2.6 % of sales.
After World war 2, elastic and Lycra propelled sales of elastic girdles and panties. Howevere, if the 1970s oil crisis dented sales, grandson Karel Van de Velde said, your loved ones realized it are required to take action.
When Van de Velde started cutting corsets in 1919, just read was manufactured from tough woven cloth. They were mainly cut and stitched in small workshops behind the stores that sold them.
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