IC Group A/S reported earnings results for the third quarter ended March 31 March 2018. For the quarter, the company's revenue as a whole decreased by 4.4% in local currency and amounted to DKK 687 million. Revenue increased in Peak Performance, where as it decreased across all other brands, most significantly in Tiger of Sweden and Saint Tropez. Also with the main driver of the revenue reduction was revenue in retail increased through the solid e-commerce growth across the 3 premium brands as well as the full year effect of new stores and outlets in Peak Performance. EBIT was roughly in line with last year at DKK 49 million. The decline in EBIT was on nonmaterial aspects, driven by lower revenue. Free cash flow in the quarter was an inflow of DKK 36 million, compared to DKK 9 million last year. CapEx was DKK 14 million was slightly lower than last year and relate primarily to maintenance of existing stores. Net debt as of March 31, 2018 was DKK 49 million lower than the same time last year. The change was driven by a combination of higher free cash flow and lower net debt level at the beginning of third quarter compared to same time last year.

Guidance for the full year 2018, which is unchanged compared to the upwards revision announced on April 24. As communicated, the company now expects the EBIT margin to increase to approximately 6%. And upwards decision is mainly a consequent of faster than expected implementation of the new organizational structure, as reported in May, 2017. In terms of revenue for the group as a whole, the company first expects to realize a minor revenue decline compared to last year, measured in local currencies. Investments are now expected to be in the region of 2% to 3% of annual revenue.