Interviews
Björn Borg sees continues sales & profit growth in weak market
26 Dec '08
5 min read
The external product area fragrances also noted strong growth during the quarter, with sales nearly doubling. The product area bags increased by approximately 12 percent, while eyewear decreased by approximately 2 percent during the quarter. Among established markets, the Netherlands, Belgium and Finland generated the highest growth during the third quarter. The other Nordic markets posted weaker results. Of the new markets, Spain reported the strongest growth during the quarter, with sales increasing several times over and more retailers added. Operations in Germany and France have not developed according to expectations, and an analysis will be made to determine how the brand can be established more quickly in these markets.
Development by business segment
The Group comprises a number of companies that operate under the Björn Borg brand on every level, from product development to distribution and consumer sales in its own concept stores.
Brand and other Sales in the Brand and other segment primarily consist of royalty revenue, sales of services within the Björn Borg network and intra-Group services. Net sales for the nine-month period reached SEK 92.3 million (82.0), an increase of 19 percent. Operating profit amounted to SEK 31.3 million (31.9) for the period. The profit was affected positively by higher sales in the network, but negatively by increased expenses to strengthen the organization. Product development The Group has global responsibility for development, design and production of clothing and footwear. A licensee for clothing operates in the Benelux market.
The segment's net sales amounted to SEK 248.8 million (214.2) during the nine-month period, an increase of 16 percent. The increase is due to substantially higher footwear exports mainly to the Netherlands and Denmark in the footwear segment and to some extent to clothing. Operating profit increased to SEK 38.8 million (29.0), as a result of the increased export.
The Björn Borg Group is the exclusive distributor in the clothing and footwear product areas in the Swedish market. Net sales in the Distribution segment rose to SEK 149.1 million (133.2) during the nine-month period, or by 12 percent. Growth is mainly due to higher clothing sales, but is also a result of the acquisition of Anteros Lagerhantering AB. Operating profit rose to SEK 29.5 million (29.0), mainly due to higher sales, though also to the lower U.S. dollar.
The Björn Borg Group owns and operates nine stores in the Swedish market that sell clothing, shoes, bags and fragrances. Moreover, Björn Borg operates two factory outlets. Net sales in the Retail segment amounted to SEK 37.7 million (41.2) during the nine-month period, a decrease of 8 percent.
For comparable stores, sales decreased by 16 percent for the nine-month period and 21 percent for the quarter. Operating profit amounted to SEK 3.2 million (9.9). Measures have been taken to improve sales and earnings in Retail, including the appointment of a new management.
Development by business segment
The Group comprises a number of companies that operate under the Björn Borg brand on every level, from product development to distribution and consumer sales in its own concept stores.
Brand and other Sales in the Brand and other segment primarily consist of royalty revenue, sales of services within the Björn Borg network and intra-Group services. Net sales for the nine-month period reached SEK 92.3 million (82.0), an increase of 19 percent. Operating profit amounted to SEK 31.3 million (31.9) for the period. The profit was affected positively by higher sales in the network, but negatively by increased expenses to strengthen the organization. Product development The Group has global responsibility for development, design and production of clothing and footwear. A licensee for clothing operates in the Benelux market.
The segment's net sales amounted to SEK 248.8 million (214.2) during the nine-month period, an increase of 16 percent. The increase is due to substantially higher footwear exports mainly to the Netherlands and Denmark in the footwear segment and to some extent to clothing. Operating profit increased to SEK 38.8 million (29.0), as a result of the increased export.
The Björn Borg Group is the exclusive distributor in the clothing and footwear product areas in the Swedish market. Net sales in the Distribution segment rose to SEK 149.1 million (133.2) during the nine-month period, or by 12 percent. Growth is mainly due to higher clothing sales, but is also a result of the acquisition of Anteros Lagerhantering AB. Operating profit rose to SEK 29.5 million (29.0), mainly due to higher sales, though also to the lower U.S. dollar.
The Björn Borg Group owns and operates nine stores in the Swedish market that sell clothing, shoes, bags and fragrances. Moreover, Björn Borg operates two factory outlets. Net sales in the Retail segment amounted to SEK 37.7 million (41.2) during the nine-month period, a decrease of 8 percent.
For comparable stores, sales decreased by 16 percent for the nine-month period and 21 percent for the quarter. Operating profit amounted to SEK 3.2 million (9.9). Measures have been taken to improve sales and earnings in Retail, including the appointment of a new management.
Björn Borg AB
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