IC Group reports revenue increase of 1.8 percent in Q1 2015/16

IC Group, parent company of Peak Performance, Tiger of Sweden and By Malene Birger, reported improves earnings within its core-business division for its Q1 2015/16. Consolidated revenue amounted to 843 million Danish krone (113 million euros), equal to an increase of 1.8 percent or 3 percent measured in local currency compared to the same period last year.

The gross profit rose to 477 million Danish krone (63.9 million euros) compared to Q1 2014/15 and gross margin improved 1.4 percent points to 56.6 percent in comparison to Q1 2014/15. Consolidated operating profit for Q1 2015/2016 increased 15.6 percent to 163 million Danish krone (21.8 million euros) driven by the Group’s Premium brands.

Peak Performance generated revenue of 343 million Danish krone (45.9 million euros) for Q1 2015/16, corresponding to dip of 2.8 percent. This decline was attributed to the wholesale channel, whereas the retail channel reported good revenue growth. Operating profit increase by 4 million Danish krone to 78 million Danish krone (10.4 million euros).

Tiger of Sweden increased its revenue by 3.0 percent to 277 million Danish krone (37.1 million euros) driven by the retail channel, whereas sales to the wholesale customers remained unchanged. Operating profit for the period amounted to 53 million Danish krone (7.1 million euros).

Revenue from By Malene Birger rose by 7.2 percent to 104 million Danish krone (13.9 million euros) which was primarily attributable to a positive development in the retail channel, however, the wholesale channel also reported higher revenue. The operating profit amounted to 13 million Danish krone (1.7 million euros).

Revenue from the Group’s Non-core business rose by 3.7 percent driven by the positive development seen in Saint Tropez which more than compensated the reduced revenue from Designers Remix. The revenue increase in Saint Tropez was to a great extent driven by commercial discounts, and the gross margin was therefore reduced.

Consequently, the Non-core business generated an operating profit of 10 million Danish Krone (1.3 million euros) compared to 11 million Danish krone last financial year (1.4 million euros).The Group’s overall outlook for the financial year 2015/16 remains unchanged, with revenue growth expected to attain a level of 4 percent.