Van de Velde NV, Belgium’s biggest maker of luxury lingerie, dropped the most in almost 3 1/2 years in Brussels trading after forecasting a surprise decline in earnings this year as retail sales in the U.S. plummet.
The shares declined as much as 9 percent to 35.25 euros, the biggest intraday retreat since November 2008, and traded 3.27 euros lower at 35.48 euros by 11:54 a.m. local time.
Van de Velde forecast full-year earnings before interest, tax, depreciation and amortization will drop, according to a statement posted yesterday on its website. Analysts projected an 4.6 percent increase to 56.2 million euros ($74.3 million), according to the average of three estimates compiled by Bloomberg. Wholesale revenue may face a “slight” decline this year and same-store sales at the Intimacy stores in the U.S. showed a “marked” drop so far this year, the Schellebelle, Belgium-based company said.
“Intimacy delivered the main negative surprise by reporting double digit sales declines, while the market is more or less flat,” Margo Joris, an analyst at KBC Securities in Brussels, wrote today in a note. “While market share of the Van de Velde brands is on track, the main problem of the Intimacy stores is traffic generation.”
Van de Velde also said it may need to take a writedown on its stake in Hong Kong-based Top Form International Ltd. (333) based on the current market price.
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