OVS says Q2 profit drops 5% on higher costs and unfavourable exchange rates (updated)
20/09/2023 17:33
(Adds CEO comments, details on buyback)
Sept 20 (Reuters) - Italian clothing retailer OVS
OVS.MI on Wednesday reported a 5% annual drop in adjusted
second quarter core profit, citing higher costs for its
spring/summer 2023 collection and unfavourable exchange rates.
Adjusted earnings before interest, tax, depreciation and
amortisation (EBITDA) fell to 59 million euros ($63.2 million)
in the April-June quarter, from 62.2 million in the same period
a year earlier.
"The month of May, normally the most important month of the
semester, was one of the coldest and rainiest in recent decades,
which had a negative impact on sales," the group's chief
executive Stefano Beraldo added in a statement.
He said the spring/summer collection had been ordered during
2022 when raw material prices and transport costs were higher,
and the euro/dollar exchange rate was unfavourable.
However, Beraldo confirmed his expectations for an
improvement in full-year performance thanks to positive sales
trends and an ongoing reduction in costs. OVS had in June
forecast year-on-year growth for 2023 without providing detailed
estimates.
The group said it plans to purchase an additional 20 million
euros worth of its own shares as part of a buyback programme
started in May.
($1 = 0.9333 euros)
(Reporting by Alessandro Parodi in Gdansk;
Editing by Kirsten Donovan)
((alessandro.parodi@thomsonreuters.com))