The Group summarizes the period with a turnover of 2.2 billion Danish kroner, which corresponds to an increase of 4.2 percent compared to the same quarter last year. At the same time, the Group's operating profit decreased by 37 percent, landing at 86 million Danish kroner.
The increase in turnover is mainly driven by online sales. E-commerce for the entire Group shows an increase of 10 percent, while physical stores note an increase of 0.7 percent.
This is how it went for Kicks
While the Group as a whole is growing, the Kicks brand is facing more resistance. Kicks had a turnover of 770 million Danish kroner during the quarter, compared to 757 million Danish kroner during the same period last year.
Adjusted for currency, this represents a decrease of 0.3 percent. Operating profit is not reported separately for the various companies in the Group, but Kicks' gross profit decreased to 305 million Danish kroner from previous 327 million Danish kroner. This gives Kicks a gross margin of 39.6 percent, compared to 43.1 percent the previous year.
Sales in Kicks' physical stores amounted to 555 million Danish kroner, and online the brand generated 215 million Danish kroner. Adjusted for currency, Kicks' e-commerce decreased by 0.6 percent, and stores decreased by 0.1 percent.
The report points to a pressured situation caused by high competition and lower consumption in parts of the Nordic region.
The margins in Kicks have been negatively affected by write-downs of inventory. The margin has also been pressured by price adjustments in a competitive environment where consumers are looking for cheaper alternatives.
At the same time, the Group's own brands continue to sell well.
At Kicks, sales of own brands increased by 6.7 percent adjusted for currency.
Share buyback
In addition to the sales figures, the company announces that it is launching a share buyback program of its own shares. The program amounts to a value of up to 100 million Danish kroner and will run until the end of March next year. The purpose of the buybacks is to reduce the company's share capital.