OVS nine months net sales decline

Net sales at OVS S.p.A. for the first nine months of 2019, the company said, amounted to 990.9 million euros (1,104 million dollars), down compared to the first nine months of 2018 due to market contraction and lower purchases of goods in favour of a better quality of sales resulting in lower markdowns to the benefit of profitability in the third quarter. The company added that adjusted EBITDA was equal to 101.1 million euros (112.6 million dollars), 10.2 percent on net sales. In the last quarter, the gap with respect to the previous year, which amounted to 18.6 million euros at July 19, was recovered.

OVS said that in the last quarter, group EBITDA amounted to 38.6 million euros (43 million dollars), up by 15.6 million euros or 68 percent with both brands contributing to the expected recovery but OVS EBITDA drove the growth, with an increase of 14.4 million euros or 81 percent.

Commenting on the outlook, the company said, 2019 Black Friday in the apparel market was less disruptive than last year when winter temperatures started a couple of days before, while this year weather got colder just after that weekend to the benefit of full price sales. OVS added that the development of the B2B business through the agreements with market places is proceeding well and new collaborations have been signed with Coop. EBITDA is expected to improve also in the fourth quarter and the group is now set to go back to a level of profitability considered closer to its historical kpi’s.

Picture:Facebook/OVS