Interim report for Q1 2010/11

Nov 10, 2010, 7:49

REPORTED GROWTH FOR 10 OUT OF 11 GROUP BRANDS AND STRONG EARNINGS

Consolidated revenue for Q1 2010/11 rose by 12% to DKK 1,216 million. 10 out of 11 Group brands reported growth  Furthermore, this revenue growth is built on growth in both the retail and wholesale segments. Operating profit amounted to DKK 227 million and adjusted for non-recurring costs of DKK 15 million in respect of the pending Canadian duty case, this corresponds to an EBIT margin of 19.9% which is satisfactory.

  • Consolidated revenue for Q1 2010/11 amounted to DKK 1,216 million (DKK 1,081 million) which is an increase of 12% compared to last year.
  • Wholesale revenue amounted to DKK 842 million (DKK 758 million) which constitutes an increase of 11%.
  • Retail revenue amounted to DKK 374 million (DKK 323 million) and thus represents a 16% increase.
  • Gross profit amounted to DKK 722 million (DKK 673 million). The Group thus generated a gross margin of 59.4% (62.2%). The pending Canadian duty case has a negative impact on the gross margin by 1.2 percentage points for Q1 2010/11. After having adjusted for this, the gross margin is thus reduced by 1.6
    percentage points compared to last financial year.
  • Capacity costs amounted to DKK 495 million (DKK 452 million) corresponding to an increase of 9%. The achieved cost efficiency amounted to 40.7% (41.8%) which is an improvement of 1.1 percentage points.
  • Operating profit amounted to DKK 227 million (DKK 221 million). The Group thus generated an EBIT margin of 18.7% (20.4%). After having adjusted for the Canadian duty case, the EBIT margin is reduced by 0.5 percentage points.
  • Order intake for the spring collection 2011 is expected to record an increase of 14%.

OUTLOOK FOR 2010/11

  • Consolidated revenue for the financial year 2010/11, which previously was expected to attain DKK 3,800 – 3,900 million, is now expected to attain DKK 3,900 – 4,000 million as a consequence of an increase in the Group’s sales currencies. Due to the Group’s foreign currency hedging and recognised non-recurring costs of DKK 15 million, the operating profit is retained at a level of DKK 320 – 360 million.
  • Investments in the region of DKK 130 – 150 million (unchanged) are expected primarily for an expansion of the distribution and sales promoting improvements of the IT platform.

Copenhagen, 10 November 2010

For further information, please contact:

Niels Mikkelsen
Chief Executive Officer
Phone: +45  3266 7721

Chris Bigler
Chief Financial Officer
Phone: +45 3266 7017