The investor day of the IC Group held in Copenhagen on April 6 yielded some interesting details about the Peak Performance brand's sales, while discussing the strategic shift that was detailed in The Compass earlier this year to revitalize the Swedish ski, outdoor, golf and lifestyle activewear brand.
A regional breakdown of sales underlines Peak Performance's strong dependence on Nordic markets, which made up 63 percent of sales in the fiscal year until June 2015. Sweden alone generated 33 percent of the brand's turnover, which amounted to 953 million Danish kroner (€128.0m-$145.5m) for the fiscal year. Denmark accounted for 12 percent of sales, while another 10 percent came from Finland and 8 percent from Norway.
The largest market outside of the Nordics was Germany with 9 percent of sales, then Switzerland with 8 percent and Austria with 4 percent. France made up 3 percent of the turnover and Italy 2 percent, leaving 11 percent for all other markets.
While Peak Performance already published a split of sales between wholesale and retail channels, the investor presentation added some details: Apart from a share of 56 percent for wholesale, about 12 percent of the sales for the last fiscal year went through franchised stores, 18 percent through own stores, 6 percent through online sales and 7 percent through outlet stores.
The numbers were outlined in a presentation by Nicolas Warchalowski, chief executive of Peak Performance, as part of an investor day by IC Group, a Danish company that owns the Swedish brand and two fashion labels, By Malene Birger and Tiger of Sweden.
Warchalowski told investors about the need to revitalize Peak Performance, which has seen average annual sales growth of about 13 percent from 04/05 until 08/09 but has been near-stagnant since then. The turnover of DKK 953 million (€128.0m-$145.5m) for the last fiscal year compares with DKK 941 million (€126.4m-$143.7m) in 08/09 and the peak was DKK 981 million (€131.8m-$149.8m) in 10/11.
As detailed earlier this year, the product range has been simplified and the brand has adopted a harmonized (and fairly radical) design line across its various categories. This allows the customers as well as the company to mix and match items and sales channels, while improving SKU efficiency.
The plans call for Peak Performance to become less dependent on the wholesale channel, through investments in own stores, controlled space and online sales. The new store concept described earlier this year is meant to underline the brand's premium positioning. Peak Performance has also adopted a new discount reduction plan to lower the discount level and have longer full-price periods in its own distribution channels.
The focus in the Nordic region is to grow in stronghold categories while relaunching Peak Performance's active, sportswear and urban ranges. The brand wants to take a cluster approach in capital cities and to capitalize on its new store concept. The focus for the Alpine region is more strongly on the relaunch of the active range. Across all markets, the brand wants to switch the focus from sell-in to sell-through, with improved support packages. A spokesman for the IC Group said the presentations for all parts of the company stayed away from discussions on profitability and detailed forecasts.