IC Group reports 11.2 percent decline in revenues

IC Group has announced that revenue of the group's continuing operations for Q1 to Q3 amounted to 827 million Danish krona (124 million dollars) corresponding to a reduction of 11.2 percent or 9 percent in local currency) driven by both the wholesale channel as well as the retail channel. The operating profit before central functions and non-recurring costs amounted to 22 million Danish krona (3.3 million dollars) compared to 79 million Danish krona corresponding to an EBIT margin of 2.7 percent against 8.5 percent in the same period last year. The group generated an operating loss of 13 million Danish krona (1.9 million dollars) corresponding to an negative EBIT margin of 1.6 percent against positive EBIT margin of 10.8 percent last year.

For the group's continuing operations, which comprise Tiger of Sweden, By Malene Birger and the reporting segment "Central functions", the company expects a minor revenue reduction measured in local currency 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. In Tiger of Sweden, the company added, a minor revenue reduction measured in local currency and a moderate decline in nominal earnings are expected. In By Malene Birger, a moderate revenue reduction measured in local currency and a substantial decline in nominal earnings are expected.

The line item "Central functions", IC Group said, will be negative as it will be affected negatively by changed allocation principles in respect of costs in the corporate functions as well as idle costs in respect of the head office after the divestment of Peak Performance. Combined, these amount to approximately 30 million Danish krona. Investments for the Group's continuing operations for the financial year are expected to amount to around 2 percent of the annual revenue.