Peak Performance, the Swedish sports and lifestyle brand, saw its sales slip by 1 percent to the equivalent of 971 million Danish kroner ($161.6m-€130.5m) for the financial year until the end of June, and its earnings suffered from rising costs for technical fabrics. IC Companys, the Danish group that owns Peak Performance and a spate of fashion labels, described the Swedish brand's performance as unsatisfactory, but predicted that it would improve with a new chief executive and upgraded management practices. The turnover of the entire Danish company slumped by 3 percent to DKK 3,819 million (€513.1m-$635.7m) while its operating profit shrank by 60 percent to DKK 130 million (€17.5m-$21.6m), as it struggled with a weak market and cost reductions. The group expects that the pressure on its gross margin will abate in the current financial year, as the fashion business returns to normalized discount and sales activities. It will continue to close down stores, without focusing on Peak Performance. The Swedish sportswear brand had 88 stores at the end of the period, making up about 29 percent of its turnover last year.