Peak Performance continued to expand its sales for the financial year ended on June 30, up by 5 percent to 941 million Danish kroner (€126.4m-$187.0m), as reported by the Swedish brand’s Danish owner, IC Companys. Underlying growth was even more impressive, reaching about 10 percent in local currencies.
This was obtained by adding layers to the existing ski and golf ranges, while continuing to build on the brand’s appeal and its sales of casual garments. On the ski side, Peak Performance launched “Heli”, a high alpine range of ski apparel.
Besides the golf range, the ski and technical outdoor ranges saw their sales increase as well, but the most convincing growth came from the casual range, which has come to represent more than 35 percent of the brand’s turnover. This has benefited strongly from the opening of ever more Peak Performance stores, where casual garments are sold all year around and make up about half of the offering.
Peak Performance ended the year with a network of 75 stores, all but four of them in Europe, and 33 of them fully owned by the company. The strategy should be accelerated in the current financial year, with no less than fifteen openings planned in Europe. The opening of more franchised stores in German-speaking countries has contributed to outstanding growth in this region.
While Peak Performance is already distributed in most of western Europe, it is starting to explore openings in eastern parts of the continent, as well as Asia. A trademark case with a Chinese sports apparel company, Peak, was settled earlier this year as Peak Performance slightly altered its name representation, to include the full Peak Performance name. This conveniently came about as the Swedish company was giving its brand identity a facelift, with a fresh logo and a refined logotype, with the words Peak and Performance attached.
Further growth will come from the footwear range that will be launched under license with the Hamm group of Germany. The range is to hit the shelves early next year in nearly all European markets where Peak Performance apparel is available. The offering does not include any technical ski or golf footwear, but all the more casual styles to be sold in a selection of independent fashion stores, fashion footwear chains or the more fashion-oriented sports stores.
The results enabled Peak Performance to shine at IC Companys, which otherwise contains a slew of fashion brands and suffered a sales decline of 4 percent to DKK3.601 million (€483.9m-$715.5m). The Danish group’s operating profit was down by 54 percent to DKK162 million (€21.8m-$32.2m), although this included non-recurring costs of DKK115 million (€15.5m-$22.8m).
However, things are likely to get worse for the group since its orders for the winter were down by 18 percent in local currencies and by 24 percent in Danish kroner. The board therefore decided not to pay any dividends to shareholders, and to use any excess cash flows to reduce short-term debt instead.