IC Group sells Saint Tropez to DK Company

IC Group has signed an agreement to sell Saint Tropez to DK Company A/S with an expected final closing date as at 31 January 2019. The company said in a statement that the group expects a positive, minor amount impact on cash flow from the sale while the accounting effect is expected to amount to a loss of 70 million Danish krone. Out of this amount, the company added, 55 million Danish krone will be recognized in the first half of 2018/19, while 15 million Danish krone is expected to be recognized in the third quarter of 2018/19.

For the group's continuing operations, which comprise Tiger of Sweden, By Malene Birger and the reporting segment "Central functions", a minor revenue reduction measured in local currency is expected for the financial year 2018/19 compared to the year before. The EBIT margin is expected to be realized at a level of 1-2 percent prior to non-recurring costs in respect of the transformation of the group.

In Tiger of Sweden, IC Group said, a minor revenue reduction measured in local currency and a moderate decline in nominal earnings are expected compared to prior outlook of revenue increase with nominal earnings at the same level as last financial year. The updated expectations for the brand reflect lower, anticipated performance in direct-to-consumer channels for the rest of the financial year - retail in particular.

In By Malene Birger, a moderate revenue reduction measured in local currency and a substantial decline in nominal earnings are expected compared to previous guidance of revenue increase with nominal earnings at the same level as last financial year. Similar to Tiger of Sweden, the updated expectations for the brand reflect lower, anticipated performance in direct-to-consumer channels for the rest of the financial year.

Picture:Saint Tropez website