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