IC Group Q1 revenues decline by 18.3 percent

Revenue of the company’s continuing operations for first quarter, IC Group said, amounted to 379 million Danish krone (58 million dollars) corresponding to a reduction of 18.3 percent or 15.8 percent measured in local currency. The operating profit amounted to 14 million Danish krone (2 million dollars) before non-recurring costs in respect of the transformation of IC Group resulting in an EBIT margin of 3.7 percent compared to 14.9 percent last financial year. When including the above-mentioned non-recurring costs, the company added that operating profit amounted to 8 million Danish krone (1.2 million dollars) corresponding to an EBIT margin of 2.1 percent.

The company said, Group's expectations for the financial year 2018/19 as a whole are unchanged in spite of the weak performance in physical retail reported by all Group brands during Q1 2018/19 where the weather conditions have had a negative impact.

IC Group expects flat revenue growth in FY18/19

The gross profit amounted to 205 million Danish krone (31.3 million dollars), and the gross margin declined by 7.8 percentage points to 54.1 percent. The company said, after having adjusted for the implemented structural changes as well as the divestment of Peak Performance in 2017/18, the gross margin would have amounted to 59.1 percent.

For the financial year 2018/19, the company said, a flat revenue development for the Group brands in total, measured in local currency, is expected. The EBIT margin is expected to be realized at a level of 0-1 percent prior to the below-mentioned non-recurring costs.

In Tiger of Sweden, revenue is expected to increase while the nominal earnings are expected at the same level as last financial year, primarily be driven by international wholesale revenue and e-commerce, while higher costs for staff and marketing will have a negative impact on earnings. In By Malene Birger, revenue is also expected to increase while the nominal earnings are expected at the same level as last financial year. In Saint Tropez, revenue is expected to still decline while the nominal earnings are expected to improve compared to last financial year. Finally, in Designers Remix, both revenue and nominal earnings are expected to be reduced driven by a lower wholesale revenue.

Picture:Facebook/Tiger of Sweden