• Q3 earnings drop to DKK45m (US$6.8m) 
  • Gross margin narrows to 54.7%
  • Sales increase 2.4%

Danish fashion firm IC Group has revealed a drop in earnings and margin in its third-quarter as a result of one-off charges.

Net profit in the three month period amounted to DKK45m (US$6.8m) from DKK66.5m a year earlier. Earnings were impacted by non-recurring costs of DKK12m, development of the group’s non-core Saint Tropez and Designers Remix business, and idle capacity costs.

Gross margin narrowed to 54.7% from 56.7% in the same period last year, impacted by non-recurring costs, negative exchange rate effects, clearance of old stock, and larger discounts.

Group revenue, however, increased 2.4% to DKK2.14bn in the quarter.

For the full year, the company said its premium brands - Peak Perfromance, Tiger of Sweden and By Malene Birger - are expected to continue to generate positive growth in 2014/15, and consequently revenue for continuing operations is expected to remain unchanged at DKK2.60bn to DKK2.65bn.

Operating profit is expected to be in the region of DKK170m to DKK210m.