DENMARK: IC Companys repeats H2 profit fears
Managers at clothing business IC Companys have repeated their fears that the company could suffer a second half loss of DKK10m (US$1.8m) or more if economic conditions deteriorate in the coming months.
Following a profit warning issued in January, the Danish company reiterated that first-half sales had been flat at DKK2.1bn, with wholesale revenues rising 2% and retail sales falling 3%.
IC said challenging market conditions would exert “substantial pressure” on revenue and gross profit for the remainder of the fiscal year, necessitating further sales and promotions to protect market share.
The company maintained its forecast of full-year revenues of DKK3.7-3.8bn and a positive operating profit, but admitted that a worsening of market conditions could put this under threat.
“The results we expect to achieve for the financial year 2011/12 are dissatisfactory – even though they are primarily attributable to external market conditions,” said company CEO Niels Mikkelsen.
“However, there is no doubt that the corporate strategy and the new structure have been important for the ability of the group to steer safely through the crisis.”
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Clothing business IC Companys suffered expected revenue and earnings declines in the third quarter, and warned that "volatile" market conditions were poised to continue in the fourth quarter....
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