May 18, 2016, 7:58

Consolidated revenue for Q1-Q3 2015/16 amounted to DKK 2,156 million (DKK 2,145 million) corresponding to an increase of 0.5%, or 1.4% measured in local currency, compared to the same period last financial year. The gross margin improved by 2.0 percentage points to 56.7% compared to Q1-Q3 2014/15. The consolidated operating profit for Q1-Q3 2015/16 rose by 18.5% to DKK 269 million (DKK 227 million), and the EBIT margin thus increased from 10.6% in Q1-Q3 2014/15 to 12.5% in Q1-Q3 2015/16. The outlook for the financial year 2015/16 has been changed. We now expect the consolidated revenue for 2015/16 at the same level as last year while the EBIT margin is expected to be realized at approx. 9%.

  • Peak Performance generated revenue of DKK 264 million for Q3 2015/16 (DKK 285 million) corresponding to a reduction of 7.4% (a reduction of 6.9% measured in local currency). As expected, this reduction was driven by the wholesale channel. The revenue reduction was mainly registered in the Nordic region. The operating profit amounted to DKK 38 million (DKK 36 million) corresponding to an EBIT margin of 14.4% (12.6%).
  • Tiger of Sweden increased its revenue by 6.6% (7.5% measured in local currency) to DKK 260 million (DKK 244 million) in Q3 2015/16. All channels reported revenue growth, particularly the e-commerce channel. The German market reported a revenue growth rate of 40.0% while the Nordic region generated revenue growth of 12.5%. The operating profit amounted to DKK 38 million (DKK 35 million) corresponding to an EBIT margin of 14.6% (14.3%).
  • Revenue for Q3 2015/16 from By Malene Birger declined by 8.5% (decline of 7.7% measured in local currency) to DKK 97 million (DKK 106 million) compared to last financial year. Both the markets inside and outside the Nordic region reported reduced revenue – however, with differences from market to market. The operating profit amounted to DKK 9 million (DKK 12 million) corresponding to an EBIT margin of 9.3% (11.3%).
  • Revenue from the Group’s Other brands rose by 5.9% to DKK 90 million for Q3 2015/16 (6.6% measured in local currency) driven by a high growth rate in Designers Remix whereas Saint Tropez reported reduced revenue. However, the operating profit declined by DKK 5 million to a loss of DKK 6 million which is attributable to a lower gross margin as well as higher capacity costs in Saint Tropez in Q3 2015/16. The EBIT margin was negative by 6.7% (negative by 1.2%).
  • A general negative development in the physical stores across all Group brands has affected the Group’s revenue development for Q3 2015/16. This combined with the effect from the restructuring of the wholesale distribution in Peak Performance contributed to a reduced consolidated revenue for Q3 2015/16 which decreased by 1.3% (a decrease of 0.5% measured in local currency) to DKK 710 million (DKK 719 million). 


  • The gross profit rose by DKK 17 million to DKK 404 million (DKK 387 million) compared to Q3 2014/15, and the gross margin was improved by 3.1 percentage points to 56.9%. The higher gross profit is primarily attributable to improved margins on sold products.


  • Capacity costs decreased by DKK 5 million to DKK 317 million compared to Q3 2014/15 which is primarily attributable to the idle capacity costs in respect of the divestment of the Mid Market division affecting Q3 2014/15 negatively.
  • Operating profit amounted to DKK 87 million for Q3 2015/16 (DKK 65 million), and the EBIT margin thus amounted to 12.3% which is an improvement of 3.3 percentage points compared to Q3 2014/15.
  • The Group’s working capital amounted to DKK 458 million corresponding to an increase of DKK 18 million compared to last financial year. This increase was primarily driven by reduced “Other liabilities” due to timing and non-recurring items. The working capital constituted 17.3% of the trailing twelve months revenue compared to 16.9% for the same period last year.
  • Return on invested capital constituted 30.1% compared to 24.8% at 31 March 2015. This increase is driven by the operating profit.
  • Mads Ryder will act as CEO of Tiger of Sweden for an interim period. He will take over the position from David Thunmarker.

Changes outlook for the financial year 2015/16

During H1 2015/16 a particularly positive revenue development was reported from own stores. However, since the beginning of H2 2015/16 we have experienced a negative development in the retail trade across all Group brands and with our partners and customers. This trend deteriorated distinctively towards the end of Q3 2015/16 and continued into the month of April, and it has affected revenue from our own stores as well as the OTB sale (in-season sale).

In addition, foreign currency translation effects had a negative impact on the reported revenue growth – primarily due to the lower exchange rate of NOK.

Based on the above, we expect the consolidated revenue for 2015/16 at the same level as last year.

As a consequence of the lower than expected revenue growth, we expect the consolidated operating profit to be realized with an EBIT margin of approx. 9%.

Investments for the financial year 2015/16 are expected to be in the region of 3% of revenue.

Copenhagen, 18 May 2016

IC Group A/S

Mads Ryder
Group CEO

Alexander Martensen-Larsen
Group CFO

Information meeting

IC Group will host an information meeting for investors, analysts and other stakeholders on Wednesday 18 May 2016 at 10.00 a.m.

The information meeting will be held in English via audio cast and telephone, and it will be possible to raise questions online using the relevant chat function or telephone. To participate in the information meeting online, please use the link below which is also available on our corporate website under Investors:

To participate in the telephone conference, please dial in using the below-listed telephone numbers:

+45 3271 1658 (Denmark)

+1 646 254 3366 (USA)

+44 (0) 20 3427 1909 (UK)

Please direct any questions regarding this announcement to:  
Jens Bak-Holder
Investor Relations Manager
+45 21 28 58 32

This announcement is a translation from the Danish language. In the event of any discrepancy between the Danish and English versions, the Danish version shall prevail.