In its recently released 2017/18 annual report, IC Group, the parent company of fashion brands By Malene Birger and Tiger of Sweden, highlighted a tough year marked by disappointing financial results. The company faced hurdles after parting ways with its biggest moneymaker, Peak Performance, resulting in a revenue decline from ongoing operations. However, there was a silver lining in the form of a slight uptick in gross margin, attributed to reduced one-time expenses compared to the prior year.
While operating profit and after-tax profit from continuing operations showed improvement, overall group revenue, inclusive of Peak Performance, dipped by 3.9% in local currency. The last quarter saw By Malene Birger and Tiger of Sweden grappling with revenue decreases, particularly in both wholesale and retail aspects.
Looking to the future, IC Group is bracing for a significant transformation as it transitions into a listed holding company with ownership in its remaining brands. This shift will see individual brands taking on more responsibilities previously handled by the group, resulting in upfront costs but potential long-term savings.
Despite the changes, the company is hoping for stable group revenue in the upcoming fiscal year, with optimistic growth projections for Tiger of Sweden and By Malene Birger. On the flip side, Saint Tropez and Designers Remix are likely to continue facing revenue challenges.
The shift to a holding company structure signifies a new era for IC Group as it tackles current industry shifts and trials to safeguard the sustainability and profitability of its core brands. With a positive outlook, the company remains confident in the future success of its star brands amid the ever-evolving landscape of the fashion realm.
For more information on IC Group and its fashion brands, check out their website here. Additionally, you can delve deeper into By Malene Birger and Tiger of Sweden by visiting their respective sites here and here.
