IC COMPANYS A/S
QUARTERLY REPORT
ON 27 MARCH 2014 IC COMPANYS ENTERED INTO AN AGREEMENT TO SELL ITS MID MARKET
DIVISION TO DK COMPANY A/S. THE GROUP’S CONTINUING OPERATIONS SUBSEQUENTLY
CONSIST OF THE THREE PREMIUM BRANDS PEAK PERFORMANCE, TIGER OF SWEDEN OG BY
MALENE BIRGER AS WELL AS THE NON-CORE BUSINESS COMPRISING THE BRANDS DESIGNERS
REMIX AND SAINT TROPEZ.
CONSOLIDATED REVENUE FROM CONTINUING OPERATIONS FOR Q3 2013/14 AMOUNTED TO DKK
716 MILLION WHICH IS AN INCREASE OF DKK 49 MILLION, OR 7%, COMPARED TO Q3
2012/13. IN PARTICULAR THE TWO PREMIUM SEGMENTS REPORTED HIGHER RE-VENUES. THE
GROUP’S GROSS MARGIN AMOUNTED TO 55.9% FOR Q3 2013/14 AND WAS THUS AT A LOWER
LEVEL COMPARED TO Q3 2012/13. THE OPERATING PROFIT FOR Q3 2013/14 AMOUNTED TO
DKK 87 MILLION WHICH IS AN IMPROVEMENT OF DKK 19 MILLION COMPARED TO Q3
2012/13.
* Revenue from the Premium Outdoor segment for Q3 2013/14 amounted to DKK 278
million (DKK 268 million) corresponding to a growth rate of 4%. The segment has
reported satisfactory growth in sales to the wholesale customers whereas sales
in the retail channel have been disappointing. The Premium Outdoor operating
profit for Q3 2013/14 amounted to DKK 38 million (DKK 27 million).
* Revenue from the Premium Contemporary segment rose by 13% to DKK 331 million
(DKK 293 million). This growth rate was particularly attributable to the
segment’s wholesale channel as well as insourcing of Tiger of Sweden’s
accessory line. The Premium Contemporary operating profit for Q3 2013/14
amounted to DKK 42 million (DKK 34 million).
* The gross margin of continuing operations amounted to 55.9% for Q3 2013/14
compared to 56.5% for Q3 2012/13. The primary reason for this development can
be ascribed the foreign currency translation effects.
* The capacity costs rose by DKK 5 million to DKK 313 million. However, the
development in costs combined with a higher revenue resulted in a 2.5
percentage points decline of the cost rate to 43.7% (46.2%).
* Operating profit improved by 28% to DKK 87 million (DKK 68 million). The EBIT
margin was thus improved from 10.3% reported in Q3 2012/13 to 12.2% in Q3
2013/14. This development is attributable to a higher revenue which more than
compensates the lower gross margin and the increased capacity costs.
* On 27 March 2014 IC Companys announced that it had sold its Mid Market
division to DK Company. Pursuant to the agreement, DK Company has acquired the
entire Mid Market division including all trademarks, commercial rights and
obligations as well as employees and retail stores. In the future the Group’s
strategic focus will be completely on the continuous development and operation
of the three Premium brands. The final closing of the agreement with DK Company
is expected to take place by 30 June 2014.
UNCHANGED OUTLOOK FOR CONTINUING OPERATIONS FOR 2013/14
In connection with the announcement of the sale of the Mid Market division the
Group specified its outlook for continuing operations for 2013/14. The outlook
for the financial year 2013/14 is thus unchanged.
The Group’s three Premium brands are expected to continue the positive
development. Consequently, the consolidated revenue from continuing operations
for 2013/14 is expected to attain a level of DKK 2,560 - 2,580 million.
The consolidated operating profit for the financial year 2013/14 is expected to
attain a level of DKK 195 - 215 million.
Investments for the financial year 2013/14 are expected to attain a level of
DKK 70 - 90 million primarily for an expansion of the distribution in the two
Premium segments.
Copenhagen, 15 May 2014
IC COMPANYS A/S
Mads Ryder
Group CEO
Rud T. Pedersen
Group CFO
