Sales up 3% at Swedish clothing brand Björn Borg in Q2

April 1 – June 30, 2012 Highlights:

• The Group’s net sales increased by 3 percent to SEK 105.5 million (101.9). Excluding currency effects, sales were unchanged.
• Deferred deliveries from suppliers of about SEK 13 million compared with the same period in 2011 were recognized as revenue during the third quarter, impacting profit by about SEK 6 million.
• The gross profit margin was 52.1 percent (53.3).
• Operating profit amounted to SEK 4.8 million (8.2).
• Profit after tax amounted to SEK 1.0 million (6.5).
• Earnings per share amounted to SEK 0.10 (0.33). Fully diluted earnings per share amounted to SEK 0.10 (0.33).
• Brand sales (excluding VAT) decreased by 8 percent to SEK 288 million (315). The decrease was the same excluding currency effects.

January 1 – June 30, 2012 Highlights:

• The Group’s net sales decreased by 3 percent to SEK 246.0 million (253.3). Excluding currency effects, sales were down 5 percent.
• The gross profit margin was 49.8 percent (51.6).
• Operating profit amounted to SEK 19.5 million (36.6).
• Profit after tax amounted to SEK 10.3 million (27.1).
• Earnings per share amounted to SEK 0.55 (1.22). Fully diluted earnings per share amounted to SEK 0.55 (1.21).
• Brand sales (excluding VAT) decreased by 1 percent to SEK 736 million (746). The decrease was the same excluding currency effects.
• A bond loan with a nominal value of SEK 200 million was issued in March. Proceeds of about SEK 197 million after transaction expenses were received in April.

“We are pleased to report stable sales in a continued weak market during the second quarter. The investments we have made in our future growth in recent years are beginning to contribute more to revenues, although earnings are still being adversely affected by the costs. In late August we are opening our first sales location in China and our operations in England are developing well. We remain confident about our development during the rest of the year,” said CEO Arthur Engel.

“We are pleased to report a stable second quarter given the weak market conditions. Björn Borg’s total brand sales turned lower during the quarter, but for the first half-year are in line with 2011. The share of brand sales from smaller and newer markets continued to grow, with sales in these countries rising by 25 percent during the quarter, while the larger markets had a tougher time and saw sales decline.”

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Björn Borg Ab