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Italian company OVS' net sales surge 5% in Q1 FY24

13 Jun '24

2 min read

Italian company OVS' net sales surge 5% in Q1 FY24

Pic: Oxana - stock.adobe.com

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OVS reported Q1 FY24 net sales of €352.2 million (~$380.5 million), a 5 per cent increase from Q1 FY23.
Growth was driven by a 5.1 per cent rise in directly operated store sales and a 3.2 per cent increase in franchise sales.
Adjusted EBITDA improved to €29.7 million, with an EBITDA margin of 8.4 per cent.
Adjusted profit before tax rose to €10.1 million.

Italian clothing company OVS has reported net sales of €352.2 million (approximately $380.5 million) in the first quarter of fiscal 2024 (Q1 FY24), a 5 per cent increase compared to the first quarter of fiscal 2023. This growth follows a significant rise in sales during the same period last year. The Upim brand performed particularly well, contributing to this positive trend.

The growth was primarily driven by directly operated stores, which saw a 5.1 per cent increase in sales. After experiencing a decline in 2023, the franchise channel also resumed growth, with sales rising by 3.2 per cent, the company said in a press release.

OVS reported an adjusted EBITDA of €29.7 million, up from €27.5 million in the first quarter of FY23. This improvement led to an increased EBITDA margin of 8.4 per cent. Additionally, the company’s adjusted profit before tax reached €10.1 million, compared to €7.7 million in the first quarter of the previous fiscal.

The company’s net cash flow showed a notable improvement, increasing by €3.5 million compared to the same period last year.

“The group’s main brands showed sales growth, despite delays in delivery caused by the Suez Canal crisis. This performance appears even more significant in view of the sharp increase recorded in the same period of the previous year. During the quarter, national contracts relating to the trade sector were renewed, with an impact that was more diluted over time than initially expected,” said chief executive officer, Stefano Beraldo.

Fibre2Fashion News Desk (DP)

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