Interim report for Q3 2010/11

May 11, 2011, 7:36

Continued growth under challenging market conditions

The performance for Q3 2010/11 was as expected. The consolidated revenue rose by 10% to DKK 1,100 million which was attributable to growth in both the retail and wholesale segments. Operating profit amounted to DKK 101 million corresponding to an EBIT margin of 9.1%.

  • Consolidated revenue for Q3 2010/11 amounted to DKK 1,100 million (DKK 996 million) which is an increase of 10% compared to last financial year.
  • Wholesale revenue amounted to DKK 748 million (DKK 669 million) which constitutes an increase of 12% compared to last financial year.
  • Retail revenue amounted to DKK 352 million (DKK 327 million) and thus represents a 8% increase.
  • Gross profit amounted to DKK 638 million (DKK 580 million). The Group thus generated a gross margin of 58.0% (58.2%).
  • Capacity costs amounted to DKK 537 million (DKK 484 million) corresponding to an increase of 11%. The cost rate for Q3 2010/11 amounted to 48.8% (48.6%).
  • Operating profit amounted to DKK 101 million (DKK 96 million). The Group thus generated an EBIT margin of 9.1% (9.6%).
  • Order intake for the autumn collection 2011 is expected to record an increase of 11%.

Outlook for 2010/11 retained

  • Consolidated revenue for the financial year 2010/11 is still expected to attain DKK 3.9 – 4.0 billion (unchanged) and the operating profit for the financial year 2010/11 is expected to attain a level of DKK 320 – 360 million (unchanged).
  • 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.

Outlook for 2011/12 based on implemented structural changes

  • It is expected that the Group retains the present growth momentum for the financial year 2011/12. The expectations are based on the expansion of the Group’s controlled distribution, same-store growth as well as continued growth in the traditional wholesale segment. The Management thus expects the consolidated revenue for the financial year 2011/12 to attain a level of DKK 4.3 – 4.4 billion.
  • Furthermore, it is still expected that the financial year 2011/12 will be marked by challenging market conditions with rising sourcing costs and fierce competition in the wholesale market. However, the Group’s new structure as well as other initiatives are expected to lead to an improved efficiency and resource prioritising. The Management thus expects the operating profit to attain a level of DKK 400 – 450 million for the financial year 2011/12.

Copenhagen, 11 May 2011

For further information, please contact:

Niels Mikkelsen
Chief Executive Officer
Phone: +45 3266 7721

Chris Bigler
Chief Financial Officer
Phone: +45 3266 7017