As Peak Performance continues to adjust its distribution, the turnover of the Swedish ski, outdoor and golf brand declined by 2.8 percent to 343 million Danish kroner (€46.0m-$48.7m) for the quarter to the end of September, but its own retail sales increased sharply and contributed to a rise in operating profit for the brand. Its sales slipped by 2.5 percent in constant currencies in the quarter, which is the first in the fiscal year of the IC Group, Peak Performance's Danish owner.
Peak Performance's wholesale and franchising turnover was down by 6.2 percent to DKK 274 million (€36.7m-$38.9m), which was attributed chiefly to a decline in sales to sporting goods stores across the Nordics. On the other hand, retail sales advanced by 13.1 percent for the quarter, with increases across actual stores and online. Excluding the outlet channel, retail sales jumped by 23.7 percent on a comparable store basis.
The brand's turnover in the Nordics was roughly stable, as increases in Denmark and Sweden made up for reduced sales in Norway and Finland. The turnover from other European countries was off by 5.8 percent, which was attributed to conservative retail orders after a warm winter season.
The gross margin for Peak Performance was down for the three months, due to changes in the product mix and more abundant commercial discounts in the wholesale market. Costs were reduced as the company closely watched their development. The brand's operating profit (Ebit) margin advanced by 1.7 percentage points to 22.7 percent for the quarter.
Sales for the entire IC Group, which includes Peak Performance along with fashion brands, moved up by 1.8 percent to DKK 843 million (€113.0m-$119.7m), an increase of 3.0 percent in constant currencies. Sales were on the rise for the group's two premium fashion brands, Tiger of Sweden and By Malene Birger, as well as its non-core business.
IC Group's gross margin improved by 1.4 percentage points to 56.6 percent and the operating margin amounted to 19.3 percent, up by 2.2 percentage points. The Danish group ended the quarter with net profit of DKK 134 million (€18.0m-$19.0m), up by 24.1 percent. Its forecast for the full fiscal year remains unchanged, predicting that sales will advance by 4 percent and the operating margin will reach about 10 percent, up from 7.8 percent for the previous fiscal year.