IC Companys, the Danish owner of Peak Performance and 10 fashion labels, reported that the turnover of that Swedish winter sports, outdoor and golf apparel subsidiary increased by nearly 6 percent to the equivalent of 975 million Danish kroner (€131.1m-$176.5m) for the 12 months through the end of September, which marks the end of the group's first fiscal quarter.
Then again, IC Companys complained about sharply declining profit margins at Peak Performance, which it said was the reason for the dismissal of the Swedish company's chief executive, Jonas Ottosson, last September.
The Danish group said it had picked an as-yet-unidentified new chief executive as well as a new sales director for Peak Performance, to start in April at the latest. Declining to mention their names at an investor conference last month, Niels Mikkelsen, chief executive of IC Companys, prided himself on having found a chief executive with a strong personality that would fit the Peak Performance brand, as well as a replacement for Stefan Wahlén, the sales director who left the Swedish company last year.
Mikkelsen said the managers of IC Companys have spent a lot of their time dealing with Peak Performance since Ottosson's departure, and they have already identified ways to improve the company's margins. Peak Performance was said to have been managed inefficiently and that the group would apply there some of the recipes it has used for Tiger of Sweden, one of its fashion brands – strongly improving its performance as a result. The changes to be implemented at Peak Performance would focus on internal processes in seven key functions identified by the Danish group.
Such intended moves were in fact very much part of the disagreements between IC Companys and some of the Peak Performance managers, who believe that the Swedish brand may lose some of its appeal as a performance apparel supplier if it uses the same fast-moving and relatively short-term strategies as the fashion brands at IC Companys (more in SGI Europe).