In its recent results, IC Companys announced 11 percent growth in consolidated revenues for the financial year ended June 30, reaching DKK 3,354 million (€436m-$637m). Excluding disposals, sales rose by 14 percent compared with the previous year. Total orders for the Fall and Winter collections are up by 13 percent on an organic basis, including a 14 percent increase for Peak Performance.
The ski and golf brand contributed more sales than the other ten remaining brands in the group’s portfolio, raising its turnover by 24 percent to DKK 802 million (€104.3m-$152.4m). Up to 39 percent of Peak’s sales figures were made outside Scandinavia. Its total revenues can be broken down to 76 percent from wholesale, 22 percent from its own retail stores and 2 percent from factory outlets.
The group’s consolidated net profit reached DKK 240.6 million (€31.3m-$45.7m), up from DKK 224.4 million (€29.2m-$42.6m) in 2006, although the operating profit margin (EBIT) decreased slightly from 10.7 to 10.1 percent over the same period. The dip in the EBIT margin was explained by higher costs and investments for the company than initially expected.
Only two brands of IC Companys, Jackpot and Saint Tropez, recorded sales declines in the past year. Jackpot’s revenues fell by 11 percent to DKK 445 million (€57.9m-$84.6m), continuing an ongoing slide. Sales levels did rise in some of the brand’s own stores between March and August of this year, but Jackpot’s order intakes for its Fall and Winter collections have declined by 19 percent and 15 percent, respectively.
The company hopes to better align its brands on the mid-price segment of the fashion market, which it claims is growing annually by 3 to 4 percent. It also intends to accelerate growth for the most successful brands, namely Peak, Inwear, Tiger of Sweden and By Malene Birgir. Its strategy includes pushing international sales for Peak, and increasing its focus on sport, junior and golf wear, with a wider offer of accessories.
As previously reported in SGI, Peak has established a separate organization for its golf collection and regionalized its sales structure. The group has also bought up the brand’s Norwegian distributor.
The overall growth rate recorded by the Danish conglomerate for the past financial year was the highest since 2001 and it was essentially triggered by its results for the 4th quarter, ended June 30. Group revenues grew by 21 percent during the three months leading up to the summer, generating a 1.5 percent increase in the gross margin and a 6.6 percent improvement in “cost efficiency.”
The company is forecasting a 12-15 percent increase in revenues for the current financial year, up to DKK 3,750-3,850 million (€487.5m-$712.5m - €500.5m-$731.5m). It also hopes to gain between 30-40 percent in operating profit and increase its EBIT margin to at least 11.5 percent within the same timeline. This is less than a previously targeted 13-15 percent EBIT margin, because the management has decided to launch new growth initiatives that involve higher costs and investments than expected on such items as showrooms, store renovation and store openings. Within five years, the company aims to reach organic annual growth of at least 15 percent, and a minimum EBIT margin of 15 percent.
