Danish fashion group IC Companys A/S, which owns brands such as Peak Performance, Matinique, Part Two, By Malene Birger and InWear, has posted a 13.2% drop in first quarter profit and lowered its outlook for the year.

For the three months to 30 September, net profit fell to DKK152.7m (US$25.8m), from DKK176m a year ago.

Revenues fell 6% to DKK1,262m, from DKK1,190.4m a year earlier. Wholesale revenue rose by 5% to DKK946m and retail revenue was also up by 5% to DKK276m.

Operating costs rose to DKK524m from DKK 475m in the quarter, mainly as a result of restructuring.

The Group has closed its sourcing office in Copenhagen and established new sourcing offices in Hanoi, Vietnam and Delhi, India. These will work with the office in Dhaka, Bangladesh, to handle sourcing for South Asia.

"The uncertain market situation is expected to continue throughout the remaining part of 2008/09 and results in an expectation of slightly lower revenue relative to 2007/08," the company said. It had previously forecast modest growth.

"The operating profit for the full year is now expected to be significantly lower than in 2007/08" the firm added.

For the rest of the financial year, the Group expects to achieve lower sell through at full price, higher discounts and increased inventory write downs relative to last year.

It also said orders for the 2009 spring collections are down 1% against last year.