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IC Group reports revenue rise of 2.4 percent

By Prachi Singh

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For the first three quarters of 2014/15, the IC Group generated revenue of 2,145 million Danish Krone (322.7 million dollars), an increase of 2.4 percent or 4.5 percent in local currency compared to the same period last year. Gross margin was 54.7 percent for the Group’s continuing operations, thus lower than in the same period last year of 56.7 percent. Operating profit of the Group’s premium brands increased, whereas operating profit for the overall continuing operations declined by 26million Danish Krone (3.9 million dollars) to 227 million Danish Krone (34.1 million dollars).

For the first three quarters, Peak Performance generated revenue of 871 million Danish Krone (131 million dollars), corresponding to growth of 3.3 percent or 5 percent in local currency. Both wholesale and retail channels reported revenue growth, with the markets in the Alps region as the main contributors. Operating profit was 145 million Danish Krone (21.8 million dollars). Tiger of Sweden increased revenue by 6.2 percent or 9.7 percent in local currency. Revenue of the retail channel was moderate, whereas sales to wholesale customers contributed positively to overall revenue growth. Growth remained strong in Germany, while revenue in the Nordic region unchanged. Operating profit was 88 million Danish Krone (13.2 million dollars).

By Malene Birger reported an increase in revenue by 5.6 percent or 6.8 percent in local currency driven by the wholesale channel. Revenue of the retail channel remained unchanged. Geographically, growth was generated primarily in the Nordic region and in Japan. Operating profit was 21 million Danish Krone (3.1 million dollars). Revenue of the non-core business declined by 9.9 percent or 9.3 percent in local currency during the first three quarters mainly due to less successful collections of Saint Tropez impacting Saint Tropez revenue negatively.

Gross margin of the Group’s continuing operations was 54.7 percent against 56.7 percent in the same period last year. Gross profit was impacted by previously reported non-recurring costs in Q2 and negative exchange rate effects, clearance of old stock and larger discounts. Operating profit in the first three quarters of 2014/15 corresponded to an EBIT margin of 10.6 percent compared to 12.1 percent in the same period last year.

The Group’s premium brands are expected to continue to generate positive growth in 2014/15, and consequently revenue for continuing operations is expected to be in the region of 2,600 million Danish Krone (391.6 million dollars) to 2,650 million Danish Krone (399.2 million dollars). For the Group’s premium brands, operating profit is expected to be in the region of 200 million Danish Krone (30.1 million dollars) to 230 million Danish Krone (34.6 million dollars), while operating profit for the non-core business is expected to be about 15 million Danish Krone (2.2 million dollars) to 25 million Danish Krone (3.7 million dollars). Overall, operating profit for the Group’s continuing operations is expected to be in the region of 170 million Danish Krone (25.5 million dollars) to 210 million Danish Krone (31.5 million dollars). Adjusted for the above costs, operating profit for the Group’s continuing operations is expected to come to 215 million Danish Krone (32.3 million dollars) to 255 million Danish Krone (38.3 million dollars).

IC Group