IC Company’s Q1 revenues marginally up by 1 percent

REPORT_ Group revenue was 828 million Danish Krone (138.4 million dollars) in the first quarter of 2014/15, an increase of 1 percent or 3 percent in local currency compared to the same period last financial year. Revenue increased for all three premium brands by a total of 7 percent in local currency, which more than outweighed revenue decrease of 17 percent for the group’s non-core business. Gross margin was 55.2 percent, which is lower than that of the same period last financial year of 55.9 percent. Operating profit came to 141 million Danish Krone (23.5 million dollars), an increase of 3 million Danish Krone (0.5 million dollars) compared to the same period last financial year.

Peak Performance generated revenue of 353 million Danish Krone (59 million dollars) for the first quarter, corresponding to growth of 3 percent or 5 percent in local currency. Operating profit came to 75 million Danish Krone (12.5 million dollars). Tiger of Sweden increased revenue by 7 percent or 11 percent in local currency. Revenue increased across all sales channels, while in terms of geography growth was generated primarily in the Nordic region and Central Europe. By Malene Birger increased revenue by 6 percent or 7 percent in local currency primarily as a result of increased sales to wholesale customers. Geographically, growth was generated mainly in the Nordic region.

Revenue for the group’s non-core business decreased by 17 percent and was not significantly impacted by exchange rate effects. The group’s gross margin was 55.2 percent against 55.9 percent in the same period last financial year. Operating profit increased to 141 million Danish Krone (23.5 million dollars), corresponding to an EBIT margin of 17.1 percent.

Since the group’s premium brands – Tiger of Sweden and By Malene Birger in particular – are expected to continue the positive development in 2013/14, the group expects total revenue to increase in the financial year 2014/15. It is further expected that in the financial year 2014/15, all premium brands of the group will increase EBIT and that the group’s non-core business will maintain its current earnings level.