Tiger of Sweden and By Malene Birger, two prominent brands within the IC Group, have encountered financial challenges in their most recent report. Despite continuous transformation initiatives, both brands have witnessed a decline in revenue and profitability.
In the nine-month period until March, revenue from the IC Group’s ongoing operations dropped by 11.2%, totaling DKK827m (€110m/£96m/$124m). Operating profit also suffered a setback, decreasing from DKK79m to DKK22m, resulting in an EBIT margin of only 2.7% compared to 8.5% previously. Tiger of Sweden experienced an 11.6% revenue decrease, while By Malene Birger saw a 9.7% drop in revenue.
Tiger of Sweden, currently operating without a permanent CEO since February, continues to face challenges despite the implementation of a new strategy. The brand reported a significant 20.7% decline in Q3 revenue, with the majority of issues stemming from the wholesale sector.
Conversely, By Malene Birger has been concentrating on optimizing cost control and digitalization to enhance its e-commerce activities. Although the brand’s revenue decline slowed in Q3, it still encounters market difficulties.
The IC Group is in the midst of a transformation process aimed at reducing one-off costs in the upcoming years. Despite predicting a slight revenue decrease for the remainder of the year, both Tiger of Sweden and By Malene Birger are anticipated to see declines in nominal earnings.
As both brands strive to overcome their current hurdles, the company is optimistic that the transformation endeavors will pave the way for a more streamlined and lucrative future for Tiger of Sweden and By Malene Birger.
For more information on Tiger of Sweden, visit their official website here.
To learn more about By Malene Birger, explore their collections on their website here.
