IC Companys, parent of Peak Performance and several other apparel brands, had 6 percent growth in sales to 1,261.6 million Danish kroner (€169.4 m-$220.7m) in the first quarter of its 2008-09 financial year, ended on Sept. 30. However, the operating profit fell by 8 percent to DKK 230.4 million (€30.9m-$40.3m) and the gross profit margin dropped by 1.1 percentage points to 59.8 percent.
IC Companys’ sales from its Peak Performance division were up by 13 percent to DKK 339 million (€45.5m-$59.3) for the quarter. The division’s orders were up by 12 percent.
Out of the company-wide sales figures, wholesale revenues were up by 5 percent to DKK 946 million (€127.1m-$165.5m) for the period, and retail revenues grew by 5 percent to DKK 276 million (€37.1m-$48.3m), boosted by store openings and expansions. On a comparable store basis, retail were flat compared with the same period last year. Orders for Spring were 1 percent lower than in 2007.
Retail profits plunged to DKK 1 million (€134,000-$175,000) from DKK 21 million last year. The company said this was because of higher discounts and increasing inventory write-downs, which it says it should continue for the rest of the fiscal year. IC Companys has 238 retail locations.
The group has closed down its sourcing office in Copenhagen but opened new ones in Hanoi, Vietnam, and Delhi, India. Along with the office in Dhaka, Bangladesh, they will handle sourcing in South Asia.
Because of the uncertain market, IC Companys has modified its guidance to expect slightly lower sales for the full fiscal year; previously the company had forecast modest growth. Operating profit is predicted to be significantly lower.
