IC Group: operating income down by 10% for first nine months
today May 28, 2015
IC Group saw very contrasting performances for each of its brands. The Danish company, which owns five brands (Peak Performance, Tiger of Sweden, By Malene Birger, Designers Remix, Saint Tropez), has published its results for its first three quarters ending on March 31. Overall, the company’s sales saw a moderate 2.4% rise to almost 2.145 million Danish kroner ($314m/£205m).
IC Group’s profitability is, nevertheless, down. The company’s operating income declined by 10% to DKK 227 million. Profits for the period, meanwhile, rose by DKK 152 million, down by 32% compared to the first nine months of the 2013/2014 financial year.
In detail, the Danish company said that its premium brands division, which it has streamlined, enjoyed a better performance: +5% for its turnover and +11% for its operating income.
The outdoor brand Peak Performance, meanwhile, recorded a healthy performance with a turnover of DKK 871 million, up 3.3%, and an operating income that increased by 10% to DKK 145 million.
The ready-to-wear brand for men and women Tiger of Sweden experienced an improved performance with a turnover of DKK 712 million during the first nine months, or a 6% increase. Its operating income showed solid progress: almost DKK 88 million, or up by 23%.
The division’s only trouble spot was By Malene Birger. The high-end woman’s brand saw its turnover increase by 5.6% to DKK 266 million, but its operating profit was down by 15% at just under DKK 21.3 million.
In general, the brands that negatively impacted IC Group’s overall results were those whose results were isolated due to their pending sale.
Together, Designers Remix and Saint Tropez saw their sales fall by 10%, to just under DKK 296.6 million, and its operating income decrease by almost half to DKK 14 million.
The company has emphasized, in particular, the negative impact of Saint Tropez’s sales decline on overall results in the first nine months.
DKK 1 = $0.15/£0.10
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