IC Group's Q3 revenues drop 13.9 percent

Consolidated revenue amounted to 379 million Danish krone (60.9 million dollars) at IC Group, a reduction of 13.9 percent or 11.9 percent in local currency driven by the wholesale channel as well as physical stores. During the quarter, three stores were closed. Gross profit amounted to 228 million Danish krone (36.6 million dollars), and the gross margin declined by 0.3 percentage points to 60.2 percent, attributable to lower margins on sold products. On April 30, the company announced sale of Peak Performance to Amer Sports Corporation.

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Consolidated revenue for Q1-Q3 2017/18 amounted to 2,170 million Danish krone (348.9 million dollars), a reduction of 3.8 percent or 2.5 percent in local currency. The consolidated operating profit amounted to 256 million Danish krone (41.1 million dollars) resulting in an EBIT margin of 11.8 percent compared to 10.1 percent last financial year.

IC Group’s segment-wise performance for Q3

Revenue from Tiger of Sweden declined by 14.6 percent or 11.9 percent in local currency to 217 million Danish krone (34.9 million dollars), driven by revenue declines in both wholesale as well as retail channel. The operating profit amounted to 18 million Danish krone (2.8 million dollars) and the EBIT margin declined to 8.3 percent.

By Malene Birger generated revenue of 84 million Danish krone (13.5 million dollars) corresponding to a reduction of 9.7 percent or 7.8 percent in local currency driven by the wholesale channel whereas revenue from the retail channel increased driven by e-commerce. The operating profit amounted to 4 million Danish krone (0.6 million dollars), and the EBIT margin amounted to 4.8 percent.

Revenue from the group's other brands decreased by 15.2 percent or 14.6 percent in local currency to 78 million Danish krone (12.5 million dollars) driven in particular by Saint Tropez. The operating loss amounted to 9 million Danish krone (1.4 million dollars) resulting in a negative EBIT margin of 11.5 percent.

Peak Performance generated revenue of 308 million Danish krone (49.5 million dollars), a growth of 3 percent or 6.1 percent in local currency, driven by the retail channel due to strong e-commerce growth. The operating profit amounted to 30 million Danish krone (4.8 million dollars) corresponding to an EBIT margin of 9.7 percent against 11.4 percent last year.

IC Group’s segment-wise results for Q1-Q3

Revenue from Tiger of Sweden for the period declined by 11.9 percent or 10.6 percent in local currency to 672 million Danish krone (108 million dollars), driven by the wholesale channel. The operating profit amounted to 62 million Danish krone (9.9 million dollars), and the EBIT margin thus declined to 9.2 percent as a consequence of a higher cost ratio.

By Malene Birger generated revenue for the period of 258 million Danish krone (41.5 million dollars), a reduction of 4.1 percent or 3 percent in local currency driven by the wholesale channel whereas e-commerce contributed to growth in the retail channel. The operating profit amounted to 17 million Danish krone (2.7 million dollars) and the EBIT margin improved to 6.6 percent due to a higher gross margin and a lower cost ratio.

Revenue from the group's other brands decreased by 11.4 percent or 11 percent in local currency to 272 million Danish krone (43.7 million dollars) for Q1-Q3 2017/18 driven by both the wholesale as well as the retail channel of Saint Tropez. The operating loss amounted to 8 million Danish krone (1.2 million dollars) resulting in a negative EBIT margin of 2.9 percent.

Peak Performance generated revenue for Q1-Q3 2017/18 of 967 million Danish krone (155.6 million dollars) corresponding to a growth rate of 5.8 percent or 7.4 percent in local currency. The operating profit amounted to 163 million Danish krone (26.2 million dollars) corresponding to an EBIT margin of 16.9 percent. The improved margin is attributable to a higher gross margin whereas the cost ratio increased.

IC Group expects minor revenue drop in FY17/18

The IC Group still expects to realize a minor revenue reduction compared to the financial year 2016/17 measured in local currency while the EBIT margin is expected to amount to approximately 6 percent.

For Peak Performance, the company still expects a moderate revenue growth but significantly higher earnings compared to 2016/17. For Tiger of Sweden, revenue is expected to decline and earnings to be significantly reduced compared to last financial year. For By Malene Birger, a moderate revenue decline is forecasted but significant earnings improvement. For Other brands, IC Group expects that the performance in physical retail in Saint Tropez will lead to a significant revenue and earnings decline leading to an earnings deficit for 2017/18.

Picture:Facebook/Tiger of Sweden

 

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