IC Company, now IC Group, reports 6 percent rise in FY14
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The Nordic home markets account for the majority of Peak Performance’s revenue with the home market Sweden being the largest market. Peak Performance’s products are sold through 2,117 selling points divided between 2,031 wholesale customers and 86 branded stores of which 40 are own retail stores and 46 are franchise stores. In connection with the restructuring of the Group’s overall structure a new brand CEO was appointed for Peak Performance. During the financial year 2013/14 the top priority for the new CEO and the rest of the management team in Peak Performance has been to reevaluate strategy.
Peak Performance realized a revenue for 2013/14 of 930 million Danish krona (160.4 million dollars) which is at the same level as last year. In spite of terminating the agreement with a large customer in Sweden, revenue from the wholesale channel rose. On the other hand, sales from the retail channel declined primarily as a consequence of store closures as well as the very warm winter weather in the Nordic markets. Revenue from the retail channel declined by 7 percent compared to 2012/13. The retail channel suffered a same-store revenue setback of 1.5 percent. Geographically, the majority of revenue derives from the Nordic home markets.
Tiger of Sweden’s products are sold through 1,172 selling points distributed between 1,130 wholesale customers, 14 franchise stores, 17 own retail stores and 11 concessions. The products are also sold through own as well as third party e -commerce channels. During the year under review Tiger of Sweden has continued the positive trend from previous years. The expansion into the important strategic markets Great Britain and Germany, which was initiated few years ago, continues as planned. Two new stores were opened in London during 2013/14. The brand has realized very strong growth rates in Germany and even though this represents a small part of the total revenue, this is a positive indicator of the vast potential which the German market is considered to hold. At the end of the financial year Tiger of Sweden entered into two agreements with distributors in France and in the USA, respectively.
Tiger of Sweden realized a revenue of 883 million Danish krona (152.3 million dollars) corresponding to a growth rate of 15 percent which is particularly attributable to the insourcing of the brand’s accessory last financial year this collection only accounted revenues from royalties. However, all sales channels reported a positive revenue development, and in particular sales to the wholesale customers rose significantly compared to last year. The retail channel realized a same-store increase of 4 percent driven by own stores as well as e-commerce Geographically, the Nordic markets primarily accounted for the growth. However, also the market segment Rest of Europe, especially England and Germany contributed with a total growth rate of more than 60 percent - however, from a modest level.
Even though By Malene Birger is the Group’s premium brand with the largest geographical spread, the majority of its revenue still derives from the Nordic home markets. The market segments Denmark, Sweden, Norway and Finland accounted for 58 percent of revenue in 2013/14 whereas Rest of Europe accounted for 28 percent. The remaining 14 percent of revenue derived from markets outside Europe with Japan, the USA and the Middle East forming some of the largest markets. By Malene Birger’s products are sold through 1,025 selling points distributed between 994 wholesale customers, 16 franchise stores, 7 own retail stores and 8 concessions.
By Malene Birger realized a revenue growth of 11 percent. All sales channels reported positive revenue development, and in particular the retail channel experienced strong growth with a revenue increase of 17 percent. The same-store revenue in the retail channel rose by 8 percent driven by higher sales in both physical stores as well as e-commerce.
Geographically, revenue especially rose in the Nordic markets, however, the markets located in the Benelux region and in Central Europe also contributed positively to the revenue development. The operating profit for 2013/14 rose by 50 percent compared to last financial year. The EBIT margin amounted to 8.3 percent compared to 5.9 percent in 2012/13. This development is attributable to a combination of an unchanged revenue level reported in Saint Tropez whereas Designers Remix generated lower revenue. The revenue development in Designers Remix is primarily attributable to store closures as well as an overall optimization of the distribution network.
At the beginning of the financial year Mads Ryder was appointed Group CEO and few months later Rud Pedersen took up the position as new Group CFO. Besides Mads Ryder and Rud Pedersen, this team consists of the three Premium brand CEOs as well as the Group’s business development function and the recently established operations function.