Fast-growing golf ranges and international sales are driving the expansion of Peak Performance, the Swedish ski and golf apparel brand, which saw its sales rise by 11 percent to 893 million Danish kroner (€119.7m-$175.7m) in the financial year ended June 30, as reported by its Danish owner, IC Companys.
As Peak continued to invest in international markets, focusing on Central Europe, its exports inflated to more than 70 percent of its turnover. The brand’s sales increased by more than 20 percent in many established European markets, led by Switzerland, Austria and the southern part of Germany, as well as Denmark, Norway and Belgium. Another country with such levels of growth was Canada, where Peak Performance has two stores, including one in Vancouver that will be a handy platform for the brand ahead of the 2010 Winter Olympics.
Peak Performance’s business in the U.K., which has been lagging behind most other European countries, should pick up more briskly during the current financial year after a change of management and distribution strategy last year. Among the new markets that Peak Performance expects to enter during the current calendar year is Russia, where it should fully benefit from its premium positioning.
Launched to complement Peak Performance’s winter products, its golf range now makes up about 8 percent of Peak Performance’s overall sales, and up to 32 percent of its spring sales. It has turned into the company’s fastest-growing business, divided into fashion-oriented golf garments and high-end technical ranges. A third collection will be added in February with the introduction of a more edgy and sophisticated luxury range of golf clothing.
Peak Performance’s casualwear range is another leading factor behind the brand’s growth. Now making up about 35 percent of the brand’s sales, it drove an increase in orders of 14 percent for next winter. It has proved particularly helpful to diversify the offering in Peak Performance stores, which form a network of 28 own stores and 40 franchised outlets, all but two of them in Europe. The company’s plans call for another 10 to 15 openings during the current financial year.
IC Companys as a whole, which also owns such brands as Inwear, Jackpot, Matinique and Part Two, reported a sales rise of 11 percent to DKK 3,737 million (€501.0m-$735.4m). Its gross margin improved by 1.3 percentage points to 60.4 percent and its operating margin reached 9.3 percent.
However, IC Companys’ net profit declined by 7 percent to DKK 224 million (€30.0m-$44.1m). The company’s management unequivocally stated that it was not satisfied with the results. Although they were caused partly by non-recurring costs, there were ongoing issues with IC Companys’ efficiency. It was therefore decided to restructure brand management, though Peak Performance will continue to be run more or less as a stand-alone business.
The changes were accompanied by yet another executive reshuffle, with the departure of the company’s chief executive officer, Henrik Theilbjørn, at the beginning of August. As announced earlier this year, he was succeeded by a more marketing-oriented executive, Niels Mikkelsen, former Nordic country manager for Esprit de Corp.
