OVS Issues Sustainability-linked Bond, Grows Market Share – WWD

MILAN — Stefano Beraldo, chief government officer of Italian retailer OVS, was upbeat on Tuesday, presenting an organization construction that was just lately strengthened by way of a capital enhance of 81 million euros.

OVS can also be issuing a six-year sustainability-linked senior unrated bond for between 150 million euros and a most of 200 million euros. The bond’s provide will start on Oct. 27 and finish on Nov. 3. Shareholder Tamburi Funding Companions has expressed curiosity in subscribing to the bond, stated Beraldo.

Beraldo stated that OVS has “fully absorbed misplaced gross sales of 400 million euros attributable to the lockdowns final yr.”

The brand new monetary sources will likely be channeled into technological improvements to avoid wasting vitality, arrange photovoltaic panels, digitalization and the administration of vitality within the group’s retailer community. Additional acquisitions have been additionally not dominated out, “in the event that they create worth.” OVS has been investing within the relaunch of Stefanel, the storied Italian brand it acquired earlier this year. 

Beraldo trumpeted “a really optimistic third quarter,” and stated that OVS has reached a 9 p.c market share, up by 100 foundation factors within the yr, due to a robust efficiency of the shops — with out opening new ones — and e-commerce.

Gross sales within the first half of the yr have been up 59.5 p.c to 599.2 million euros, in contrast with the identical interval in 2020.

On-line gross sales rose 30 p.c in contrast with 2020 and 77 p.c in contrast with 2019. OVS prospects whole 4.7 million, up 12 p.c in a yr.

Within the second quarter, OVS generated a money stream of 75.7 million euros.

Earnings earlier than curiosity, taxes, depreciation and amortization within the second quarter amounted to 54.5 million euros, up 50.9 p.c in contrast with the identical interval final yr and up 45.7 p.c in contrast with 2019. “This was the very best EBITDA ever, due to the optimistic gross sales efficiency, our value management and the cautious administration of the markdowns,” stated Beraldo, underscoring the group’s “solidity, means to generate money and to react to outdoors occasions, in addition to its positioning, which presents an essential various to buyers.”

OVS has been attracting new prospects by changing into extra of a platform, which along with providing a spread of merchandise designed and created in-house is opening as much as collaborations with different manufacturers, together with Hole, Child Angel, first launched with the late Elio Fiorucci, and Grand & Hills, with Davide De Giglio, who would go on to create New Guards Group. “Hole is a world icon and it’s not possible to purchase in Italy until in Milan and Rome or on-line,” stated Beraldo, who additionally launched the Nina Kendosa model to the shops, in addition to Piombo for males and from this fall for girls, designed by Massimo Piombo, who can also be artistic director of OVS.

Beraldo believes in a “multichannel platform providing modern, accessible, easy-to-wear fashion, sustainable and much from the quick fashion idea, with lasting, timeless designs.” That is additionally in sync with the elevated investments in sustainability. He was proud to notice that OVS has jumped to the highest spot within the Vogue Transparency Index.

“We aren’t solely a standard retailer, vertically built-in, however a participant with one of many largest and most structured provide chains on the European stage,” stated Beraldo.

 OVS, which went public in 2015 on the Milan Inventory Trade, additionally consists of the UPIM chain and operates round 1,400 shops in Italy and 400 outdoors the nation.