IC Group posts 0.5% increase in Q1-Q3 2015/16 revenue
Consolidated revenue for Denmark's IC Group's Q1-Q3 2015/16 period amounted to DKK 2.15bn (DKK 2.14bn), corresponding to an increase of 0.5% year-on-year.
IC Group, which owns brands Peak Performance, Tiger of Sweden, By Malene Birger, Designers Remix and Saint Tropez, saw gross margin improve by 2% to 56.7% compared to Q1-Q3 2014/15. Consolidated operating profit for Q1-Q3 2015/16 rose by 18.5% to DKK 269m (DKK 227m), and the EBIT margin thus increased from 10.6% in Q1-Q3 2014/15 to 12.5% in Q1-Q3 2015/16.
Q3 operating profit amounted to DKK 87m (DKK 65m). The gross profit rose by DKK 17m to DKK 404m (DKK 387m) compared to Q3 2014/15.
The group also announced that group CEO Mads Ryder will act as CEO of Tiger of Sweden for an interim period. He will take over the position from David Thunmarker.
Ryder commented: "During H1 2015/16 a particularly positive revenue development was reported from own stores. However, since the beginning of H2 2015/16 we have experienced a negative development in the retail trade across all Group brands and with our partners and customers. This trend deteriorated distinctively towards the end of Q3 2015/16 and continued into the month of April, and it has affected revenue from our own stores as well as the OTB sale (in-season sale).
In addition, foreign currency translation effects had a negative impact on the reported revenue growth – primarily due to the lower exchange rate of NOK. Based on the above, we expect the consolidated revenue for 2015/16 at the same level as last year. As a consequence of the lower than expected revenue growth, we expect the consolidated operating profit to be realized with an EBIT margin of approx. 9%."
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