×
32 584
Fashion Jobs
ROSS STORES
Store Protection Specialist
Permanent · La Habra
L BRANDS
Asset Protection Officer, Morse rd (2nd Shift 3pm - 11pm)
Permanent · Columbus
BATH & BODY WORKS
sr. Manager, Carrier Strategy
Permanent · Columbus
VICTORIA'S SECRET
Brand Operations Manager-Crystal Mall
Permanent · Waterford
L BRANDS
Asset Protection Officer, Morse Crossing - 3rd Shift (11pm-7am)
Permanent · Columbus
VICTORIA'S SECRET
Brand Operations Manager-Coconut Point
Permanent · Estero
BATH & BODY WORKS
District Manager - Bath & Body Works - North Austin - Austin, tx
Permanent · Waco
VICTORIA'S SECRET
Brand Operations Manager-Valley West
Permanent · West Des Moines
L BRANDS
Asset Protection Officer, Broad st -1st Shift 7am-3pm
Permanent · Reynoldsburg
L BRANDS
Asset Protection Officer, New York City
Permanent · New York
BATH & BODY WORKS
Senior HR Generalist - Home Office
Permanent · Reynoldsburg
VICTORIA'S SECRET
Brand Operations Manager-White Marsh
Permanent · Baltimore
VICTORIA'S SECRET
Asset Protection Investigator, Victoria's Secret (Southland Mall - Hayward, ca)
Permanent · Sacramento
PINK
Brand Operations Manager-Solano
Permanent · Fairfield
VICTORIA'S SECRET
Product Owner
Permanent · Reynoldsburg
ESTÉE LAUDER COMPANIES
Manager, Creative Operations, Creative Content Hub, North America
Permanent · New York
ESTÉE LAUDER
Director, Ecommerce, North America - dr.Jart+
Permanent · New York
JCPENNEY
Product Manager - Site Management Tools & Cms
Permanent · Plano
JCPENNEY
Financial Planning Senior Analyst - Stores Finance
Permanent · Plano
JCPENNEY
Central Investigations, Crisis Response / Remote Monitoring Technician - Asset Protection
Permanent · Plano
FOOT LOCKER
Senior Product Manager (Membership)
Permanent · Chicago
FOOT LOCKER
Security Guard
Permanent · New York
Translated by
Nicola Mira
Published
Dec 19, 2016
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

IC Group's top brands struggle with eroding margins

Translated by
Nicola Mira
Published
Dec 19, 2016

In the first quarter of the 2016-17 fiscal year, closed at the end of September, Danish fashion corporation IC Group reported a revenue rise of nearly 2%, reaching DKK851 million. However, the profitability of the group's three leading labels — Peak Performance, Tiger of Sweden and By Malene Birger — has declined in the period, and the group's operating margin has fallen from 19.3% to 15.9%.

 


Peak Performance recorded a small increase in revenue - DR

 

At the end of the 2015-16 fiscal year, closed on 30th June, the IC Group's revenue reached DKK2.665 billion, equivalent to €358 million. At the time, the figure was regarded as disappointing by the management team, but the group's improvement in profitability, with an operating income of DKK243 million, up 17% compared to the previous fiscal year, was a result which bode well for the future.

The group’s performance in the first quarter of the new fiscal year was inconsistent though. The quarter is the most important for winter sports label Peak Performance, which racked up sales of DKK348 million (+2% at constant exchange rates), of which DKK274 million came from multi-brand and franchised stores. Operating income was DKK62 million, and the operating margin fell from 22.7% to 17.8%, a downturn the label attributed to its investment in new store openings.

As for Tiger of Sweden, revenue in the first quarter grew by over 5% at constant exchange rates, reaching DKK289 million, DKK194 million of which came from multi-brand and franchised stores. With an operating income of DKK55 million, the label's operating margin remains stable at 19%.

By Malene Birger is having a harder time: in the quarter, its revenue fell by over 3%, down to DKK99 million, of which DKK75 million were generated through the wholesale channel and franchised stores. Its operating income plummeted to DKK4 million, the operating margin falling from 12.5% to 4%, notably due to extensive promotional sales.

The IC Group's other segment, comprising the fast fashion brand Saint Tropez and a majority shareholding in Designers Remix, generated a revenue of DKK115 million. It was the only part of the group's business to improve its operating margin, rising from 8.8% to 11.3%, thanks to an increase in gross margin.

At the end of the first quarter, the IC Group achieved its revenue growth objective of +6%, but it has now revised downwards to 8% its initial 9% forecast for the year's operating margin.

The management's main concern is the weak in-store traffic. In the first quarter, all of the group's brands suffered a decline in sales in like-for-like terms. However, the situation is not stopping the IC Group from opening new shops: the plan is to open between 15 and 20 stores in the year, focusing on Germany for Tiger of Sweden, while London is the target for By Malene Birger.

Copyright © 2021 FashionNetwork.com All rights reserved.