• FY profit falls 15.2% to DKK140m
  • Gross margin drops to 54.8%
  • Revenue up 2.9% to DKK2.64bn

Danish fashion firm IC Group has recorded a double-digit decline in full-year net profit, weighed down by non-recurring costs and lower revenue at its non-core business.

Net profit amounted to DKK140m (US$21.1m) for the 12 month period, compared to DKK165m last year. The company, formerly known as IC Companys, said this was negatively impacted by discontinued operations such as the divested mid-market division, which recorded a loss of DKK14m.

Gross margin fell to 54.8% from 57.3% in the prior year, due to non-recurring costs of DKK8m in the second quarter, higher discounts and the clearance of old collections.

Revenue, however, increased 2.9% to DKK2.64bn from DKK2.56bn a year ago.

Within the group's premium brands, revenue at Peak Performance rose 2.5% to DKK953m, Tiger of Sweden grew 6.9% to DKK943m, and By Malene Birger increased 4.8% to DKK342m.

However, IC Group's non-core Saint Tropez and Designers Remix business saw revenue decline 5.8% to DKK400m, due to the negative impact on Saint Tropez, in particular, from the less successful collections over the course of the year.

Group CEO Mads Ryder said: “We have a clear and well-defined focus on the premium segment, and we have three strong brands which have delivered solid and satisfactory results during this financial year.

“We have now implemented a structure which supports the growth targets set out for each of these three brands. They all show a strong potential for further international expansion. This potential must be exploited, and we must seize all future possibilities. We need to improve our performance in respect of both growth and earnings and we are determined to do so.”

For the 2015/16 financial year, IC Group expects revenue growth of 4%, EBIT margin of 10% and investments of annual revenue to range from 3-4%.