IC Company’s Q1 revenues up 2 percent

Consolidated revenue for Q1 2012/13 amounted to

1,197 million Danish krone (205 million dollars) corresponding to an increase of 2 percent compared to last financial year. The premium segment generated a growth rate of 11 percent and thus realised growth for the fourth consecutive quarter. The Group’s gross margin amounted to 57.9 percent which is an improvement of 0.9 percentage points. The operating profit amounted to 166 million Danish krone (19 million dollars) corresponding to an increase of 13 percent.

Revenue from the premium segment increased by 11 to 682 million Danish krone (117 million dollars), which was driven by growth initiatives in both the core markets and new markets. At the same time this segment reported an increase of 30 percent of its operating profit which amounted to Danish krone132 million (22 million dollars).

Management still expects volatile market conditions for the financial year 2012/13. The Group thus expects a same-store setback and pressure on the Group's wholesale customers, primarily in the mid-market segment. However, the pressure on the Group's gross margin is expected to abate in 2012/13 as a consequence of normalised discounts and sales activities in the industry. Furthermore, the new sourcing structure and continuous optimisation are expected to affect the gross margin favourably.

Chief Executive Officer of IC Companys A/S Niels Mikkelsen commented, “A clear focus on growth in the premium segment and consolidation in the mid- market and fast fashion segments means that we can reduce the Group’s complexity and cost base. In total the Group has and will implement earnings-improving initiatives of at least 100 million Danish krone (17 million dollars) compared to the financial year 2011/12 which all support our ambitions for the Group.”