Peak Performance, which went through wide-ranging management changes last year, saw its sales drop by 6 percent to 267.5 million Danish kroner (€35.9m-$46.4m) for the three months until the end of March. This is the third quarter in the fiscal year of IC Companys, the Danish company that owns the Swedish ski, outdoor and golf brand.
IC Companys said that the sales decline at Peak Performance, which constitutes the Danish group's Premium Outdoor segment, stemmed from weaker spring orders as wholesale customers were under pressure. The Swedish brand's wholesale and franchising revenues were off by 9.1 percent to DKK181.1 million (€24.3m-$31.4m) for the quarter.
Meanwhile, Peak Performance's own retail sales increased marginally to DKK86.4 million (€11.6m-$15.0m), but they decreased by 10.2 percent on a same-store basis. This retail turnover, generated by sales in Peak Performance's shops, outlets and online store, amounted to about 32.3 percent of the brand's quarterly sales.
The Premium Outdoor segment at IC Companys reported a decline of 13 percent in its operating profit (Ebit) to DKK26.7 million (€3.6m-$4.6m) for the quarter. It amounted to an Ebit margin of 10.0 percent, compared with 10.9 percent for the same period the previous year.
The improvement of the profit margin is regarded as one of the top tasks for the new management of Peak Performance. It has been headed since last May by Henrik Bunge, former managing director of the Adidas Group in the Nordics, who has laid out a new five-year strategic plan for the Swedish brand.
For the first nine months of IC Company's fiscal year, from the start of July until the end of March, Peak Performance's sales slumped by 7 percent to DKK831.5 million (€111.6m-$144.2m). Its operating profit before amortization (Ebitda) for the nine months reached DKK139.4 million (€18.7m-$24.2m), amounting to an Ebitda margin of 16.8 percent. The operating profit of the Premium Outdoor segment landed at DKK119.1 million (€16.0m-$20.7m), equivalent to an Ebit margin of 14.3 percent.
The entire Danish group's turnover inched up by 1 percent to DKK906 million (€121.6m-$157.2m) for the third quarter alone, excluding the Jackpot and Cottonfield brands, which are to be divested. Its gross margin was up by 3 percentage points to 57 percent due to improvements in sourcing activities. The group's operating profit for the three months jumped to DKK 79.2 million (€10.6m-$13.7m), representing an Ebit margin of 8.8 percent against 7.1 percent for the same period last year.