(Reuters) - Italian clothing retailer OVS 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)