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IC Group reveals 2.2 percent decline in H1 revenue

Consolidated revenue for H1 2017/18 at IC Group amounted to 1,483 million Danish krone (246.7 million dollars) corresponding to a reduction of 2.2 percent or 1.5 percent in local currency). The company said, revenue decreased in the wholesale channel whereas the retail channel reported increased revenue. The gross margin increased by 1.3 percent to 57.9 percent compared to the same period last financial year. The consolidated operating profit amounted to 207 million Danish krone (34.4 million dollars) compared to 180 million Danish krone (29.9 million dollars) last year, resulting in an EBIT margin of 14 percent compared to 11.9 percent for H1 2016/17.

Review of IC Group’s H1 performance

In the second quarter, Peak Performance generated revenue of 313 million Danish krone (52 million dollars) corresponding to a growth of 17.2 percent or 18.5 percent in local currency). The company added that revenue development was driven by the wholesale channel as a consequence of higher in-season selling and timing of deliveries from Q1 2017/18. Furthermore, the retail channel also contributed to this growth, which was driven by the full-year effect of new stores as well as increased outlet activity. The operating profit amounted to 61 million Danish krone (10 million dollars) corresponding to an EBIT margin of 19.5 percent.

Revenue from Tiger of Sweden for the quarter declined by 14.1 percent or 13.1 percent in local currency to 189 million Danish krone (31.4 million dollars). Both the retail channel as well as the wholesale channel reported lower revenues during the period. The operating loss amounted to 3 million Danish krone (0.5 million dollars) against a profit of 6 million Danish krone (1 million dollars) resulting in a negative EBIT margin of 1.6 percent compared to positive EBIT margin of 2.7 percent last year.

By Malene Birger generated revenue of 78 million Danish krone (12.9 million dollars), a growth rate of 1.3 percent or 2.2 percent in local currency driven by the retail channel from both physical stores as well as e-commerce. The operating profit amounted to 5 million Danish krone (0.8 million dollars), and the EBIT margin improved to 6.4 percent.

Revenue from the group's other brands decreased by 8 percent or 7.6 percent in local currency to 92 million Danish krone (15.3 million dollars) for Q2 2017/18 driven by Saint Tropez. The operating loss amounted to 2 million Danish krone (0.3 million dollars) resulting in a negative EBIT margin of 2.2 percent against positive EBIT margin of 4 percent last year.

Consolidated revenue amounted to 673 million Danish krone (111.9 million dollars), rise of 1.1 percent or 2.1 percent measured in local currency driven by the wholesale channel of Peak Performance and the retail channel of By Malene Birger partly offset by the lower sales reported by the wholesale channel of Tiger of Sweden. During Q2 2017/18, the total number of stores was unchanged as Peak Performance opened one store and Saint Tropez closed one store. The gross profit amounted to 387 million Danish krone (64.3 million dollars) and the gross margin increased to 57.5 percent.

Segment highlights of H1 results

In the first half, Peak Performance generated revenue of 659 million Danish krone (109.7 million dollars), a growth of 7.2 percent or 8.1 percent in local currency driven by both the wholesale channel as well as the retail channel. The operating profit amounted to 133 million Danish krone (22 million dollars) corresponding to an EBIT margin of 20.2 percent.

Revenue from Tiger of Sweden declined by 10.6 percent or 9.9 percent in local currency to 455 million Danish krone (75.7 million dollars). Revenue from the wholesale channel declined due to lower order intake and in-season selling whereas revenue from the retail channel increased. The operating profit amounted to 44 million Danish krone (7.3 million dollars), and the EBIT margin thus declined to 9.7 percent against 12 percent.

By Malene Birger generated revenue for H1 of 174 million Danish krone (28.9 million dollars) declined 1.1 percent or 0.5 percent in local currency driven by the wholesale channel as a consequence of lower in-season selling whereas e-commerce and the physical stores contributed to growth in the retail channel. The operating profit amounted to 13 million Danish krone (2.1 million dollars), and the EBIT margin improved to 7.5 percent.

Revenue from the group's other brands decreased by 9.8 percent or 9.5 percent measured in local currency to 194 million Danish krone (32.2 million dollars) driven by the retail channel of Saint Tropez. The operating profit amounted to 1 million Danish krone (0.1 million dollars) resulting in an EBIT margin of 0.5 percent against 7.9 percent last year.

IC Group maintains full year outlook

Based on year-to-date performance as well as our current expectations for the rest of the year, the company has maintained the guidance for the financial year 2017/18 for the group. IC Group expects to realize a minor revenue reduction compared to the financial year 2016/17 and an EBIT margin of approximately 5percent.

For Peak Performance, the company still expects a moderate revenue growth but higher earnings compared to 2016/17. Expectations for Tiger of Sweden are unchanged and revenue is expected to decline while earnings are expected to be significantly reduce compared to last financial year. For By Malene Birger, IC Group expects a moderate revenue decline but significant earnings improvement. For other brands, the company expects that the performance in physical retail in Saint Tropez will lead to a significant revenue and earnings decline leading to an earnings deficit for 2017/18.

Picture:Peak Performance website

Delta Apparel net sales increase 19 percent in Q1

Net sales for the fiscal year 2018 first quarter at Delta Apparel, Inc. were 90.3 million dollars, an increase of 14.4 million dollars or 19 percent, from prior year first quarter sales of 75.9 million dollars excluding the 9.4 million dollars of sales from the company’s since-divested Junkfood business. Net sales increased by 5 million dollars or 5.9 percent from the 85.3 million dollars reported for the prior year first quarter that includes sales from Junkfood business. The company said that each of the its business units achieved double-digit sales growth over the prior year period, led by increases of 28 percent and 26 percent at Soffe and Art Gun, respectively, and 20 percent at Activewear.

“With double-digit growth across the board and improved operating earnings, we are pleased with our results in what is usually our most challenging seasonal quarter,” said Robert W. Humphreys, Delta Apparel, Inc.’s Chairman and Chief Executive Officer in a statement.

Highlights of Delta Apparel’s first quarter

Gross margins for the quarter in the branded segment expanded to 37.2 percent from 31.1 percent in the prior year period. This increase, the company said, was offset by a decline in basics segment gross margins due to higher raw material costs, resulting in overall gross margins of 18.1 percent compared to 20.6 percent in the prior year period. Adjusting for the discrete impact of tax reform, the company achieved net income of 0.08 dollar per diluted share compared to a loss of 0.08 dollar per diluted share in the prior year period.

Net sales in the basics segment were 73.2 million dollars, up 20 percent from 60.8 million dollars in the fiscal year 2017 first quarter. Activewear sales grew 20 percent over the prior year quarter, with increases at both Catalog and FunTees. Higher-margin products, particularly those within the Delta Platinum line, continued to gain acceptance in the market and sales increased 73 percent year-over-year. Art Gun saw a double-digit increase in units driving 26 percent year-over-year sales growth and record sales for the quarter.

Net sales in the branded segment were 17.2 million dollars for the quarter, up 14 percent year-over-year. Soffe sales for the quarter increased 28 percent over the prior year period. Salt Life sales increased 12.4 percent. Salt Life’s ecommerce sales remained on their double-digit growth path during the quarter and its new retail store in Daytona Beach, Florida, continued to perform well.

“While we expect the apparel markets to generally remain challenging, particularly for traditional retailers, we are excited about what we are seeing in our businesses and anticipate another year of growth and profitability for Delta Apparel,” added Humphreys.

Picture:Facebook/Soffe Active

Troubled Chinese conglomerate Wanda announced Monday that e-commerce giant Alibaba has agreed to buy a stake in its cinema division for around 750 million US-dollars, the latest sell-off by the heavily-indebted group.

Wanda Film said in a regulatory filing that Alibaba will buy a 7.66 percent stake for 4.68 billion yuan, and a holding company controlled by the Beijing government will take 5.11 percent for 3.12 billion yuan (around 500 million US-dollars), generating over 1.2 billion US-dollars for the conglomerate. Following rapid diversification, Wanda ended up mired in debt and under the scrutiny of Chinese regulators, forcing its head Wang Jianlin -- once China's richest man -- to sell off parts of his empire.

Last month, it raised 5.4 billion US-dollars through a stake sale and retail link-up with several investors, including Chinese internet giant Tencent. Wanda Film owns 1,352 cinemas around the world with more than 14,000 screens -- around 12 percent of the global box office, according to the Wanda Group website.

Alibaba will now become the second-largest shareholder in the division, strengthening its position in China's massive entertainment market. The e-commerce behemoth already has a foothold in Hollywood, with its 2016 purchase of a minority stake in Steven Spielberg's Amblin Partners, which owns DreamWorks Pictures.

Wanda originally specialised in real estate, but later diversified into cinema, amusement parks and sports -- including the 2015 acquisition of a 20-percent stake in Spanish top-flight football club Atletico Madrid. But Beijing, which has been trying to control the surge in Chinese corporate debt, was alarmed by Wanda's "irrational" purchases, which were largely financed through borrowing. (AFP)

Radley FY17 turnover up but EBITDA declines

For the year ended April 30, 2017, Radley + Co Limited said in accounts filed with the Companies House UK that the turnover rose to 47.1 million pounds (66 million dollars) driven by a new partnership with Debenhams in the UK and 13 percent increase in ecommerce sales to 11 million pounds (15.5 million dollars). However EBITDA decreased to 3.3 million pounds (4.6 million dollars) from 5.5 million pounds (7.7 million dollars) in the previous year.

The company added that international sales during the year under review rose 14 percent due to the growth witnessed in Thailand, Australia and travel retail partners. The company made investments in international ecommerce platforms and launched Asian, US, Europe and China website. Radley also partnered with Tmall to serve the Chinese market.

The company added that increase in turnover was offset by the impact of devaluation of pounds against dollar and Indian rupee, two principal sourcing currencies used by the group. Also because of the number of costs incurred during the year, operating profit reached 1.2 million pounds (1.7 million dollars) against 1.8 million pounds (2.5 million dollars) in the previous year.

Picture:Radley website

Sainsbury's acquires Nectar

UK supermarket Sainsbury’s has confirm the acquisition of Nectar, the loyalty programme that it uses, for 60 million pounds.

The deal through the acquisition of the shares of Aimia Inc's UK business, means that Sainsbury’s now owns all assets, colleagues, systems and licences required for the full and independent operation of the Nectar loyalty programme in the UK.

Sainsbury’s has been a member of the Nectar programme since it launched in 2002. The loyalty programme has more than 20 million members, who earn Nectar points when shopping for groceries, booking a holiday or buying petrol. It’s rewards include money off shopping, travel, days out and even cinema tickets.

The acquisition will now see Sainsbury’s taking charge of the UK operation in a move that it states supports its “strategy of knowing its customers better than anyone else”.

Sainsbury's acquires Nectar

The supermarket added that the transaction will be immediately cash positive and earnings accretive.

It added: “There is no change for customers as a result of the acquisition and they should continue to collect and redeem their Nectar points as normal.”

David Johnston, group chief executive, Aimia, said: “Selling the Nectar business to Sainsbury’s was the optimal risk-adjusted outcome for Aimia and we have worked to ensure a seamless transition for collectors and employees.”

Image: courtesy of Nectar

The White Company and Charles Tyrwhitt turnover rises in FY17

Bectin, owner of the White Company and Charles Tyrwhitt has reported a decline in gross profit to 14.9 million pounds (21 million dollars) against 15.9 million pounds (22 million dollars), while gross profit margin dropped from 56 percent to 54 percent for the year ending March 25, 2017.

However the company said, The White Company’s turnover increased to 198.4 million pounds (280 million dollars) compared to 184.3 million pounds (260 million dollars) last year, while operating profit for the year rose 1.8 percent to 17.6 million pounds (24.8 million dollars).

In a Companies House UK filing, Bectin said that Charles Tyrwhitt revenues for the year under review rose to 194.4 million pounds (274.5 million dollars) from 114.7 million pounds (161.9 million dollars) in the previous year.

Three The White Company stores and two Charles Tyrwhitt were opened during the year and by the end of the year the company operated 57 White Company and 22 Charles Tyrwhitt stores.

The company added that the UK's decision to leave the EU has resulted in uncertainty for the outlook of the UK economy, and although difficult to gauge all the implications, the presence in overseas markets provides the company a strong position to continue its growth. The company also has plans to open further stores in the UK.

Picture:Facebook/The White Company

BYT rebrands to The R Collective and partners with Redress for the Design Award 2018

London - Sustainable designer collection BYT has rebranded itself as The R Collective as it announces its partnership with NGO Redress for the Redress Design Award 2018. The world’s largest sustainable fashion design competition for emerging and established designers has opened its 2018 cycle to all applicants around the world and is offering the winner the chance to join the R Collective and create a future upcycled collection for the brand.

The R Collective originally stems from Redress’ 10-year legacy and aims to shine a light on the possibilities offered by collaborating with leading emerging designers to create affordable, yet luxurious upcycled collections from premium textile waste. The R Collective currently works with four designers, who are previous winners of the Redress Design Award (formerly known as the EcoChic Design Award) and include Kévin Germanier, a Central St Martins graduate; Hong Kong Chinese Victor Chu whose creativity in zero waste design has been translated into various collections; British knitwear designer, Kate Morris, who also boasts a major 2017 PETA award; and Israeli Lia Kassif who has won a prestigious ‘People’s Award’ for her upcycling.

BYT rebrands to The R Collective and partners with Redress for the Design Award 2018

“The fashion industry is one of the world’s most polluting industries and 80 percent of a product’s environmental impact is laid down at the design stage,” said Christina Dean, The R Collective’s Co-Founder and Redress’ Founder in a statement. “We know we can make fashion a force for good by empowering the incredible vision from the world’s best sustainable fashion designers by retailing their upcycled, limited edition collections. It’s vital to cater to the significant shift in consumer appetite for original, authentic fashion brands whilst capitalising on the increasing sustainable fashion market.”

BYT rebrands to The R Collective and partners with Redress for the Design Award 2018

The 2018 cycle of the Redress Design Award is now open to designers around the world who have less than three years’ industry experience. The competition application deadline is March 13, 2018. In honor of the new partnership, 25 percent of The R Collective future profits will be donated to Redress.

Photos: Kate Morris, courtesy of The R Collective

Paul Smith revenues increase 3.5 percent

British clothing company Paul Smith has reported 3.5 percent rise in turnover for the year ending June 30, 2017 to 184.8 million pounds (261 million dollars). The company said in annual accounts filed with the Companies House UK that profits before exceptional items increased by 45.5 percent to 5.7 million pounds (8 million dollars), however profit for the year dropped from 7.8 million pounds (11 million dollars) to 2.1 million pounds (2.9 million dollars).

The company added that it has begun seeing positive results after investing in restructuring and refreshing the business and products. Retail sales for the year under review rose by 11 percent overall and 3 percent on a like-for-like basis, which the company said resulted from the closure of Fifth Avenue store in New York in January 2016 and the relocation of its Paris flagship store in September 2016. The company said its retail performance has continued to improve since year end, with season to date sales for the A/W17 season up 18 percent or 11 percent on a like-for-like basis.

Paul Smith also continued with its global footprint expansion with new store openings in Paris, Copenhagen and Birmingham. The company plans to open new stores in Manchester and Berlin and acquired a shop in Luxembourg, earlier operated by a franchise partner. Ecommerce sales also increased by 17 percent during the year, while wholesale sales to franchise partners select multi-brand shops and online retailers declined by 11 percent due to weak demand in the company’s core markets of UK, France, Russia and significant reductions in Asia.

Picture:Paul Smith website

Burberry Foundation partners with Oxfam & PUR Projet to support cashmere production in Afghanistan

London - The Burberry Foundation, the independent charity founded by Burberry in 2008, has teamed up with charity Oxfam and PUR Projet to launch a new programme supporting rural cashmere producing communities in Afghanistan. Together the organizations will launch a five-year programme, the first of its kind in the country, which aims to empower local communities by creating a more inclusive and sustainable cashmere industry.

“We are very proud to build this programme with Oxfam and PUR Projet in Afghanistan to support and improve the livelihoods of thousands of people across the country,” commented Leanne Wood, a trustee of the Burberry Foundation and Chief People, Strategy and Corporate Affairs Officer at Burberry in a statement. “There is enormous potential for the Afghan cashmere industry and we believe our programme will deliver resources that will go some way to making it a profitable and sustainable industry for local communities.”

Burberry Foundation supports cashmere production in Afghanistan

The programme will offer cashmere goat herders the training and tools needed to enhance their livelihoods and help lift them out of poverty. Afghanistan is the third largest global producer of cashmere, after Mongolia and China respectively, exporting approximately 1000 tons of cashmere per year, equal to 7 percent of the total global production. As the majority of Afghanistan population lives in rural areas and is fully depended upon agriculture and livestock for their livelihood, the programme aims to work with local herders to create community-owned cooperatives and provide them with the needed knowledge, technical skills, essential services and access to markets to support sustainable farming and economic development.

“Oxfam is very excited to launch this programme with the support of the Burberry Foundation to expand our work on sustainable livelihoods in Afghanistan,” continued Sachitra Chitrakar, the Interim Country Director for Oxfam in Afghanistan. “With extreme poverty on the rise, it is important to continue our commitment supporting local communities in the fight against poverty.”

Pierric Jammes, the Co-Founder and Managing Director of PUR Projet, added: “PUR Projet is very excited for the opportunity to work with the Burberry Foundation and Oxfam on this fantastic initiative in Afghanistan. It is through such partnerships that innovative solutions can be found to drive true change and support local communities in their endeavours to bring themselves out of poverty and manage their natural resources sustainably. We strongly believe that this will be a demonstration of the true potential of businesses to engage in positive change and support our global community.”

The new programme also aims to support the promotion of gender equality by ensuring women are an integral part of the design and management of cooperatives and offering women leadership training. The new programme aligns with Burberry Group’s responsibility agenda to support one million people in the communities that sustain the wider luxury industry over the next five years, thereby helping build a more sustainable future.

Photo: Couresty of Burberry

Aussie retailers are fighting omni-present Amazon with strike in its home turf: a 160 million dollars automated e-commerce warehouse.

The warehouse, created by Toll, will be built upon 50 million dollars’ worth of automation. The advanced technology reduced the staff need to a tenth of its original size, highlighted Australian media over the weekend.

The warehouse can deliver to people’s homes or to stores and, according to sources close to the matter, it should only take three hours to go from the time of order to delivery.

Specialty Style Group Ltd (ASX: SFH), parent group to City Chic, Millers and Rivers brands, will take up about 40 percent of the warehouse.

Over the next months, Specialty Style will close at least 300 of its 1,000 stores so that only the profitable ones remain, reports ‘The Motley fool´.