Peak Performance raised its revenues by 11.9 percent in constant currencies during the fourth quarter of IC Group's financial year, ended June 30, leading to growth of 10.0 percent on a reported basis to 121 million Danish kroner (€16.3m-$19.4m) for the period. The brand generated an operating loss in the seasonally weak quarter, but the negative Ebit margin improved to 36.4 percent from 39.1 percent in the year-ago period.
All the quarterly revenue growth took place in the Nordic region for the Swedish sports apparel brand, as sales declined elsewhere. It was driven by the wholesale channel, but retail sales increased as well, with to a 0.7 percent improvement in same-store sales and the addition of new stores.
The improvement at Peak Performance didn't prevent the IC Group from posting a high negative Ebit margin of 20.9 percent across the company, up sharply from the negative margin of 5.1 percent generated in the same quarter of 2016. Two other brands of the group, Tiger of Sweden and By Marlene Birger, turned in an operating loss from an operating profit.
For the full financial year ended on June 30, IC Group reported a rise of 3.2 percent in consolidated revenues to DKK 2,749 million (€369.6m-$439.9m), rising by 4.3 percent in local currencies. In line with a previous forecast, the gross margin dipped by 1.5 percentage points to 55.3 percent and the Ebit margin fell to 4.5 percent from 9.1 percent in the previous year.
Peak Performance raised its sales by 10.6 percent to DKK 1,036 million (€139.3m-$165.8m) for the full year, with growth of 11.6 percent on a constant-currency basis, but its Ebit margin eased down by 0.2 percentage point to 9.8 percent.
The management expects Peak Performance to post moderate growth in sales and earnings for the current financial year. As a whole, the group expects to see its revenues decline slightly, generating an improved Ebit margin of around 5 percent.