IC Companys Q1 gross margin down 1.3 percent

REPORT_ IC Companys gross margin amounted to 56 percent for the

first quarter of 2013-14 compared to 57.3 percent for the first quarter last year. This decline is partly attributable to a higher exchange rate of the group’s primary sourcing currency compared to last financial year.

Revenue from the premium outdoor segment, which comprises the brand Peak Performance, rose by 2 percent. Revenue from the premium contemporary segment, which comprises the brands Tiger of Sweden and By Malene Birger, rose by 8 percent. Revenue from the mid market contemporary segment suffered a setback of 13 percent. Operating profit corresponded to an EBIT margin of 15.1 percent.

The group’s premium brands are expected to continue the positive development and generate solid growth rates for 2013-14. As a consequence of the challenges in the group’s mid market segment, which is expected to suffer a revenue setback, the total consolidated revenue growth for 2013-14 is expected to be modest. However, earnings are expected to be improved in all segments and the total consolidated earnings are consequently expected to increase significantly.