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Retail revenue for Q2 2010/11 up by 12%, IC Companys
09 Feb '11
5 min read
• Operating profit amounted to DKK 265 million (DKK 263 million). The Group thus generated an EBIT margin of 12.6% (14.1%). After having adjusted for non-recurring costs, the EBIT margin for H1 2010/11 amounted to 13.9%. The EBIT margin for Q2 2010/11 was improved by 0.4 percentage points to 5.7% after having adjusted for nonrecurring costs.
• Order intake for the summer collection 2011 is expected to record an increase of 10%.
Outlook for 2010/11
• Consolidated revenue for the financial year 2010/11 is still expected to attain DKK 3,900 - 4,000 million (unchanged). The existing pressure on the Group's gross margin as a consequence of rising sourcing costs and a more fierce competition in the wholesale market is expected to continue. On this basis, the operating profit for the financial year 2010/11 is expected to attain a level of DKK 320 - 360 million (unchanged).
• Investments in the region of DKK 130 - 150 million (unchanged) are expected primarily for an expansion of the distribution and sales promoting improvements of the IT platform.
Summary
The target for the financial year 2010/11 is to generate growth and improve earnings capacity for the Group. As expected, the achieved results for H1 2010/11 underpin the fact that we can reach these targets. We still expect a revenue growth rate of 12-14% and an improved EBIT margin of 0.1-0.9% compared to the financial year 2009/10 (see above).
However, the above projections do not reflect our estimates of the Group's true earnings potential. To be able to harvest this potential in the future, we have looked into the issue of the Group's complex organisational structure. This has thus resulted in the implementation of a significant and extensive organisational change. Furthermore, structural changes in the Group's logistics have also been implemented. Both initiatives will increase the Group's future earnings capacity.
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• Order intake for the summer collection 2011 is expected to record an increase of 10%.
Outlook for 2010/11
• Consolidated revenue for the financial year 2010/11 is still expected to attain DKK 3,900 - 4,000 million (unchanged). The existing pressure on the Group's gross margin as a consequence of rising sourcing costs and a more fierce competition in the wholesale market is expected to continue. On this basis, the operating profit for the financial year 2010/11 is expected to attain a level of DKK 320 - 360 million (unchanged).
• Investments in the region of DKK 130 - 150 million (unchanged) are expected primarily for an expansion of the distribution and sales promoting improvements of the IT platform.
Summary
The target for the financial year 2010/11 is to generate growth and improve earnings capacity for the Group. As expected, the achieved results for H1 2010/11 underpin the fact that we can reach these targets. We still expect a revenue growth rate of 12-14% and an improved EBIT margin of 0.1-0.9% compared to the financial year 2009/10 (see above).
However, the above projections do not reflect our estimates of the Group's true earnings potential. To be able to harvest this potential in the future, we have looked into the issue of the Group's complex organisational structure. This has thus resulted in the implementation of a significant and extensive organisational change. Furthermore, structural changes in the Group's logistics have also been implemented. Both initiatives will increase the Group's future earnings capacity.
Click here for more details
IC Companys A/S
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