IC Companys, the Danish group which owns Peak Performance, has agreed to pay 25 million Danish kroner (€3.4m-$4.1m) to take over the distribution of the Swedish sports apparel brand in Norway from its former exclusive importer, Adventure Sport & Leisure, with effect from next July 1. The business, which generated annual revenues of DKK 65 million (€8.7m-$10.6m), will be integrated into the platform of IC Companys’ Norwegian subsidiary.
Peak Performance enjoyed sales growth of 14 percent to DKK 402 million (€53.9m-$65.6m) during the 1st half the Danish group’s financial year, which ended Dec. 31. Orders for Peak Performance products, to be delivered in the 3rd and 4th quarters of IC Companys’ current fiscal year, were up by 13 percent. Peak Performance has 15 stores around the world. A new one opened in Düsseldorf a few days ago and another one is set to come onsteam in Dubai in May.
Sales for all of IC Companys’ multiple apparel brands rose by 9 percent to DKK 1,629 million (€218.3m-$265.7m) during the 6-month period. Overall, the group’s revenues increased by 8 percent to DKK 1,655 million (€221.8m-$270.0m), and the gross margin expanded by 3.6 percentage points to 58.0 percent. Operating profit before interest and taxes (EBIT) grew by 57 percent to DKK 241 million (€32.3m-$39.3m), representing a margin that grew by 4.5 percentage points to 14.5 percent. The higher earnings were attributed to growing order volumes, increased order and cost efficiencies, better sell-though, higher gross margins and lower exchange rates for the countries the group sources from.
IC Companys had mixed results geographically. In its two main markets, Sweden and Denamark, sales rose by 11 percent to DKK 391 million (€52.4m-$63.8m) and by 19 percent to 283 million (€31.9m-$38.8m), respectively. In Holland, overall sales fell by 3 percent, and turnover in the UK and Ireland also slid by 9 percent. In Norway, IC Companys’ sales jumped by 34 percent to DKK 113 million (€15.1m-$18.4m). For its current financial year, IC Companys projects revenues of roughly DKK 3 billion and operating profit of DKK 285-315 million.
