Q4 sales slide 28% at Swede innerwear brand Björn Borg

14 Feb '14

2 min read

Björn Borg AB announced its financial results for fourth quarter and also financial year ending December 31, 2013

October 1 – December 31, 2013

- The Group’s net sales decreased by 28 percent to SEK 100.3 million (138.7). The decrease was the same excluding currency effects.

- Shipments with order value of about SEK 25 million were shifted from December to January 2014, compared with year-end 2012, affecting the operating result by about SEK 12 million.

- The gross profit margin was 52.5 percent (51.6).

- The operating loss was SEK 12.5 million, against year-earlier profit of SEK 15.1 million

- The after-tax loss amounted to SEK -11.0 million, against year-earlier profit of SEK 11.9 million.

- Earnings per share before and after dilution amounted to SEK -0.40 (0.45).

- Brand sales (excluding VAT) decreased by 12 percent to SEK 322 million (376). The decrease was the same excluding currency effects.

January 1 – December 31, 2013

- The Group’s net sales decreased by 9 percent to SEK 499.2 million (551.4). Excluding currency effects, sales were down 8 percent.

- The operating profit for 2013 was negatively affected with about SEK 12 million from delayed shipments, and with non-recurring items of about SEK 14 million, referring to the Chinese business and the resigning CEO, in total about SEK 26 million.

- The gross profit margin was 50.9 percent (50.2).

- Operating profit amounted to SEK 21.2 million (69.8).

- Profit after tax amounted to SEK 13.9 million (47.2).

- Earnings per share before and after dilution amounted to SEK 0.86 (2.11).

- Brand sales (excluding VAT) decreased by 5 percent to SEK 1,521 million (1,598). Excluding currency effects, the decrease was 4 percent.

The Board of Directors has decided to propose to the Annual General Meeting a distribution of SEK 1.50 (3.00) per share, totaling SEK 37.7 million (75.4).

“As reported earlier this year, 2013 was marked by continued weak retail demand in many of Björn Borg’s markets, particularly the Netherlands. Together with the major shipment delays at the end of the year and disposal costs for the Chinese operations, this contributed to the significant decline in sales and earnings for the full year and the fourth quarter. Our operations in England and Finland are developing positively, as are our own retail and e-commerce operations,” said Henrik Fischer, Acting CEO.

Björn Borg AB

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