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2016-11-15

IC Group A/S: INTERIM REPORT FOR THE PERIOD 1 JULY 2016 TO 30 SEPTEMBER 2016

Consolidated revenue for Q1 2016/17 amounted to DKK 851 million (DKK 843 million) corresponding to a growth rate of 0.9% or 1.8% measured in local currency. During Q1 2016/17, the Group experienced low traffic in its physical stores across all Group brands, and consequently, the same-store revenue declined by 6.6%. The gross margin was 56.1% compared to 56.5% for the same period last financial year. Costs rose by DKK 28 million of which the main part is attributable to sales-related costs. The consolidated operating profit for Q1 2016/17 amounted to DKK 135 million (DKK 163 million), and the EBIT margin thus amounted to 15.9% compared to 19.3% for Q1 2015/16.

We still expect to realize a revenue growth rate measured in local currency of at least 6%. However, the EBIT margin is now expected to attain a level of 8-9% (previously: approx. 9%) due to the risk of a challenging retail climate for the remainder of the financial year.

By segment:

* Peak Performance generated revenue for Q1 2016/17 of DKK 348 million (DKK
343 million) corresponding to a growth rate of 1.5% (2.2% measured in local
currency). This increase was driven by continued e-commerce growth as well
as the impact from new stores opened during the financial year 2015/16.
However, timing effects had a negative impact on revenue by approx. DKK 15
million. The operating profit amounted to DKK 62 million (DKK 78 million)
corresponding to an EBIT margin of 17.8% (22.7%). The reduced profit is
primarily attributable to higher sales-related costs, including costs for
new stores. The operating profit for Q1 2015/16 was positively affected by
timing effects of DKK 8 million.

* Tiger of Sweden generated revenue for Q1 2016/17 of DKK 289 million (DKK
277 million) corresponding to an increase of 4.3% (5.5% measured in local
currency). Growth in the wholesale channel was driven by a positive effect
of DKK 18 million due to a shift in deliveries of goods from Q4 2015/16 to
Q1 2016/17. Growth in the retail channel was driven by both new stores as
well as continued e-commerce growth. The operating profit amounted to DKK
55 million (DKK 53 million) corresponding to an EBIT margin of 19.0%
(19.1%).

* Revenue for Q1 2016/17 from By Malene Birger declined by 4.8% (a decline of
3.4% measured in local currency) to DKK 99 million (DKK 104 million)
primarily driven by the retail channel where low traffic in own stores was
reported throughout the quarter under review. The operating profit amounted
to DKK 4 million (DKK 13 million) corresponding to an EBIT margin of 4.0%
(12.5%) which is attributable to a lower gross margin due to larger
discounts as well as non-recurring costs of DKK 4 million in connection
with a comprehensive brand and positioning analysis.

* Revenue from the Group's Other brands rose by 1.8% (2.0% measured in local
currency) to DKK 115 million for Q1 2016/17 (DKK 113 million). The
operating profit increased by DKK 3 million to DKK 13 million due to an
improved gross margin in both brands. The EBIT margin amounted to 11.3%
(8.8%).

Group:

* Consolidated revenue amounted to DKK 851 million (DKK 843 million)
corresponding to a growth rate of 0.9% (1.8% measured in local currency).
New stores opened during 2015/16 as well as continued growth in the Group's
e-commerce contributed to this revenue growth.

* The gross profit amounted to DKK 477 million (DKK 477 million), and the
gross margin was 56.1% (56.6%). After having adjusted for positive
non-recurring effects in Q1 2015/16, the gross margin was at the same level
as last financial year.

* Capacity costs rose by DKK 28 million to DKK 342 million compared to Q1
2015/16. After having adjusted for timing effects and non-recurring costs
in Q1 2016/17 as well as 2015/16, costs increased by DKK 20 million of
which the main part is attributable to sales-related costs - primarily for
new stores opened during 2015/16.

* The consolidated operating profit for Q1 2016/17 amounted to DKK 135
million (DKK 163 million), and the EBIT margin thus amounted to 15.9%
compared to 19.3% for Q1 2015/16.

* The working capital amounted to DKK 679 million corresponding to an
increase of DKK 99 million compared to last financial year. This increase
was primarily driven by higher inventories. The working capital constituted
25.4% of the trailing twelve months revenue compared to 21.9% for the same
period last year.

Updated outlook for the financial year 2016/17We still expect to realize a revenue growth rate measured in local currency of
at least 6%. Based on the current exchange rates of the Group's primary
sales currencies (primarily SEK, NOK and GBP), this corresponds to a reported
revenue growth rate of at least 5% (unchanged).

Revenue growth is expected to be driven by sales in both the wholesale channel
as well as the retail channel. At present, we have solid insight into the
wholesale revenue for the remainder of the financial year 2016/17, and based
on this, we expect a pre-order growth rate of approx. 7% for the remainder of
the financial year. In addition, we expect to open 15-20 new stores as
opposed to 10-15 stores as announced at the beginning of the financial year.

During Q1 2016/17 we have experienced a negative revenue development in our
physical stores driven by lower traffic compared to Q1 2015/16 whereas we
have seen some improvements in sales and consequently same-store growth at
the beginning of Q2 2016/17. For the remainder of the financial year, a flat
same-store revenue is expected.

However, we still see a risk of a tough and challenging retail climate for the
remainder of the financial year resulting in a potential negative impact on
high-margin revenue from the physical stores as well as the supplementary
sales to wholesale customers during the season. In such case, this will put
pressure on the Group's gross margin and have a negative effect on the cost
ratio.

Consequently, we now expect the Group's EBIT margin to attain a level of
approx. 8-9% for the financial year 2016/17 (previously: "approx. 9%").

Investments for the financial year 2016/17 are expected to attain a level of
approx. 3-5% of the annual revenue (unchanged). These investments are
undertaken to maintain existing assets - including store furniture and
equipment - as well as in connection with new store openings (leasehold
improvements and if necessary key money).

Copenhagen, 15 November 2016

IC Group A/S

Mads Ryder

Group CEO

Alexander Martensen-Larsen

Group CFO

Information MeetingIC Group will host an information meeting for investors, analysts and other
stakeholders on Tuesday 15 November 2016 at 10.00 a.m.

The information meeting will be held in English via audio cast and telephone,
and it will be possible to raise questions online using the relevant chat
function or telephone. To participate in the information meeting online,
please use the link below which is also available on our corporate
websiteicgroup.netunder Investors:http://edge.media-server.com/m/p/8ubngem3

To participate in the telephone conference, please dial in using the
below-listed telephone numbers:

+45 3271 1658 (Denmark)

+1 646 254 3366 (USA)

+44 (0) 20 3427 1909 (UK)

Please direct any questions regarding this announcement to:

Jens Bak-Holder

Head of Investor Relations

+45 21 28 58 32

This announcement is a translation from the Danish language. In the event of
any discrepancy between the Danish and English versions,
the Danish version shall prevail.

24_UK_Q1_2016-17_15112016
http://hugin.info/171579/R/2056928/770535.pdf

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This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: IC Group A/S via Globenewswire

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