Outlook

Outlook for 2017/18

The outlook for the financial year 2017/18 is marked by a number of factors which were identified in connection with the changes to the Group’s management structure during H2 2016/17 relating in particular to in-season selling, as well as the underlying principles and practices in respect of the purchase of goods forming the basis for in-season selling.

The business principles in respect of purchase of goods and sales for all three Premium brands have become more stringent which will lead to a negative impact on the development of both revenue and earnings in a continued challenging retail environment.

In Tiger of Sweden revenue is furthermore expected to decline as a consequence of lack of focus on innovation and product renewal over an extended period while the gross margin will be affected negatively due to a more competitive price structure. These factors combined with costs in respect of the new management team as well as increased marketing will have a significant negative impact on earnings.

A moderate revenue and earnings growth is expected in Peak Performance while we expect a moderate revenue decline but significant earnings improvement in By Malene Birger.

For the Group as a whole, we expect to realize a minor revenue reduction compared to the financial year 2016/17 and an EBIT margin of approx. 5%.

Investments for the financial year 2017/18 are expected to be in the region of 3-4% of annual revenue.

Outlook for 2017/18 Realized 2016/17 Previous guidance Current guidance Status
Revenue growth measured in local currency 1.9% n.a. Minor revenue decline Unchanged
Revenue growth measured in reporting currency (DKK) 1.0% n.a. n.a. Unchanged
EBIT margin 9.1% n.a.  approx. 5% Updated
CAPEX (in % of full-year revenue) 3% n.a. 3-4% n.a.

Last update: August 31, 2017