Home / Knowledge / News / Apparel/Garments / IC Companys: Unusual warm weather affects Christmas sale
IC Companys: Unusual warm weather affects Christmas sale
19
Jan '12
At an extraordinary board meeting the Board of Directors of IC Companys A/S reviewed the preliminary financial results for H1 2011/12 which indicate a consolidated revenue of DKK 2,105 million corresponding to the same level as last financial year, and an operating profit declining from DKK 265 million to DKK 146 million after having adjusted for expected non-recurring costs of DKK 23 million.

During the months November, December and the first half of January the Group experienced a continuing slowdown in consumer spending which is partly due to the unusual warm weather during the autumn and winter and partly the worsened financial crisis. This development affected the important Christmas Sale. The competition for the consumers' money has therefore been even more fierce and the amount of sales campaigns and presale has shown to be extraordinarily high.

Consequently, all Group brands generated lower retail revenues than expected. The Group brands' wholesale also suffered from a higher rate of cancellations and returns than expected just as the sale in season was lower than anticipated. However, the impact of these factors varies to a large extent within the individual Group brands.

Management anticipates that the challenging market conditions will continue for the remainder of the financial year 2011/12 resulting in a substantial pressure on both revenue and gross profit. As a consequence hereof, the Group will thus continue throughout H2 2011/12 to defend its market position by means of sales promoting activities and campaigns.

However, the structural changes of the Group and the general cost reductions are expected to lead to a reduction of the cost base by DKK 40 million for H2 2011/12.

Based on these statements, Management expects the consolidated revenue for the financial year 2011/12 to attain a level of DKK 3.7-3.8 billion (previously announced outlook of DKK 3.9-4.0 billion). Under the present market conditions, Management expects a positive operating profit for H2 2011/12, however, should the market conditions deteriorate, the Group may possibly suffer a double-digit loss in million DKK for H2 2011/12. Previously, Management expected an operating profit for the financial year 2011/12 amounting to DKK 250-300 million after having adjusted for non-recurring costs of DKK 23 million.

Cash flow from operating and investing activities for H1 2011/12 amounted to an inflow of DKK 72 million corresponding to an improvement of DKK 42 million compared to last financial year. Under the present market conditions, Management also expects a cash inflow from operating and investing activities for H2 2011/12.

Chief Executive Officer of IC Companys A/S Niels Mikkelsen commented;

”Q2 2011/12 was expected to be challenging. Nevertheless, we must conclude that the market conditions have proven to be significantly worse than anticipated and the visibility continues to be very low. There is no doubt that we are not satisfied with the financial results, and we have worked very hard to adjust the Group for the challenging market conditions characterised by declining consumer confidence and willingness to buy. We therefore expect stronger development for the Group in the future. However, in spite of the hard times, we have still generated growth and enhanced profit in some brands as well as improved earnings in other brands even though their revenues did not increase.”

IC Companys

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Govt should improve ease of doing business: ASSOCHAM

The government needs to continuously invest in improving the ease of...

Fashion | On 20th Feb 2017

South Korea’s fashion industry to grow 3.3% in 2017

The South Korean fashion industry is expected to grow by 3.3 per cent ...

Interviews View All

Giovanni Pizzamiglio, Paolo Crespi & Riccardo Robustelli
Epson, For.Tex & F.lli Robustelli

‘The percentage share of printing in the global textile market is pretty...

Anshul Sood
Oceedee

‘Indian footwear market is nascent and largely a trend follower’

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search