- Prachi Singh |
Consolidated revenue for the Q1 to Q3 2016/17 period at IC Group amounted to 2,256 million Danish krona (336 million dollars) corresponding to a growth rate of 4.6 percent or 5.6 percent measured in local currency. In the third quarter, consolidated revenue amounted to 739 million Danish krona (110 million dollars), a growth rate of 4.1 percent or 4.4 percent in local currency). The company said, revenue increased in both the wholesale as well as the retail channel – in the latter channel driven by new stores and e-commerce.
The gross margin amounted to 56.3 percent compared to 56.7 percent last financial year. The consolidated operating profit amounted to 228 million Danish krona (33 million dollars), resulting in an EBIT margin of 10.1 percent compared to 12.5 percent for the same period in 2015/16. The company now expects a revenue growth rate of 3-4 percent measured in local currency (previously 5-6 percent) and an EBIT margin of 4-5 percent (previously 6-7 percent) for the financial year 2016/17 and a minor revenue reduction and an improved EBIT margin for the financial year 2017/18.
Segment-wise Q3 performance of IC Group
Peak Performance generated revenue of 299 million Danish krona (44 million dollars) corresponding to a growth rate of 13.3 percent or 13.6 percent in local currency driven by both the wholesale channel as well as the retail channel. The operating profit amounted to 34 million Danish krona (5.07 million dollars) corresponding to an EBIT margin of 11.4 percent driven by both the gross margin as well as the cost ratio.
Tiger of Sweden generated revenue of 254 million Danish krona (37 million dollars), a decrease of 2.3 percent or 1.8 percent in local currency. The company said, revenue from the wholesale channel declined due to lower in-season selling as well as conversion of franchise stores during Q1 2016/17. Revenue from the retail channel increased by 10.5 percent driven by both new and existing stores as well as e-commerce. The operating profit amounted to 33 million Danish krona (4.92 million dollars) and was negatively impacted by non-recurring costs of 5 million Danish krona in connection with changes to the management team which exceeded the positive development of the gross margin. The EBIT margin thus amounted to 13 percent against 14.6 percent.
By Malene Birger generated revenue of 93 million Danish krona (13.8 million dollars), a decline of 4.1 percent or 4 percent in local currency. This revenue reduction, IC Group said, was primarily attributable to lower order intake on the spring collection whereas the retail revenue increased. The operating profit amounted to 6 million Danish krona (0.89 million dollars) and the EBIT margin declined to 6.5percent due to higher costs whereas the gross margin improved.
Revenue from the group’s other brands increased by 2.2 percent or 1.9 percent measured in local currency driven by Saint Tropez. The operating loss amounted to 2 million Danish krona (0.30 million dollars) against a loss of 6 million Danish krona (0.89 million dollars) last year, resulting in a negative EBIT margin of 2.2 percent against negative EBIT margin of 6.7 percent.
Segment performance in the Q1-Q3
Revenue from Peak Performance for Q1-Q3 2016/17 increased by 10.7 percent or 11.6 percent in local currency to 914 million Danish krona (136 million dollars), particularly because of the retail channel where new stores especially in the Nordic region and strong e-commerce growth contributed. The operating profit amounted to 145 million Danish krona (21million dollars) corresponding to an EBIT margin of 15.9 percent against 16.6 percent.
Tiger of Sweden revenues of 763 million Danish krona (113 million dollars), increased 1.1 percent or 2.4 percent in local currency driven by a positive effect of approximately 18 million Danish krona caused by a shift in deliveries in Q1 as well as new stores opened during 2015/16 and e-commerce. The operating profit amounted to 94 million Danish krona (14 million dollars) corresponding to an EBIT margin of 12.3 percent.
By Malene Birger’s revenue declined by 2.9 percent or 1.7 percent in local currency driven by lower order intake as well as a negative development in physical stores during H1 2016/17. The operating profit amounted to 10 million Danish krona (1.49 million dollars). Revenue from the group’s other brands increased by 3.4 percent, also 3.4 percent in local currency with revenue increases reported in both brands, in particular in Designers Remix. The operating profit amounted to 15 million Danish krona (2.24 million dollars), and the EBIT margin amounted to 4.9 percent (2.7 percent) due to a higher gross margin.