IC Group H1 revenues rise 3.3 percent

IC Group revenue was 1,426 million Danish Krona (217.8 million dollars) in the first half of 2014/15, representing an increase of 3.3 percent or 5.5 percent in local currency, compared to the same period last year. Gross margin was 55.1 percent for the Group’s continuing operations, which was lower than for the same period last year. Operating profit for the Group’s continuing operations which came to 162 million Danish Krona (24.7 million dollars).

Peak Performance generated revenue of 586million Danish Krona (89.6 million dollars), corresponding to growth of 3.6 percent or 5.6 percent in local currency. Growth in sales to wholesale customers was satisfactory, whereas revenue growth of the retail channel was negative. The brand generated revenue growth in the Nordic region and Central European countries.

Tiger of Sweden increased revenue by 8.4 percent or 12.2 percent in local currency. The retail channel recorded moderate revenue growth, while sales to wholesale customers in particular made a positive contribution to the overall revenue growth. The Nordic region and Germany were the main contributors to the overall revenue growth.

Revenue reported by By Malene Birger was unchanged compared to the same period last year, corresponding to growth of 1.4 percent in local currency. Revenue from the wholesale channel increased and outweighed reduced revenue of the retail channel. This reduction in revenue was primarily attributable to the e-commerce channel where website traffic was not adequately converted into sales.

Revenue from the non-core business declined by 5.2 percent and 4.6 percent in local currency. Saint Tropez increased revenue in the second quarter, thus partly outweighing its negative performance in Q1. Designers Remix generated positive revenue growth in the first half. Operating profit declined by 4 million Danish Krona (0.6 million dollars) to 162 million Danish Krona (24.7 million dollars).

The Group’s premium brands are expected to continue their positive trend of growth in 2014/15, and Group revenue is therefore expected to increase. Consequently, revenue from continuing operations is expected to be in the region of 2,600-2,650 million Danish Krona (397.5-405.2 million dollars). Earnings of the Group’s premium brands are expected to improve and operating profit is expected to be realised in the region of 200-230 million Danish Krona (30.5-35.1 million dollars)

Operating profit for the Group’s continuing operations is expected to be approximately 170-210 million Danish Krona (26-32.1 million dollars). Adjusted for the above-mentioned costs, operating profit for continuing operations is expected to be in the region of 215-255 million Danish Krona (32.9-39 million dollars).