Björn Borg Q3 sales up 4 percent

Björn Borg Group has reported that its sales during the third quarter amounted

to 166.8 million Swedish kroner (25 million dollars), an increase of 4 percent. Excluding currency effects, sales rose by 2 percent. Reported revenue and operating profit for the third quarter were not affected by the delayed deliveries as was described in the half-year report. The reported figures as of June 30, 2012 were correct and unaffected by such delayed deliveries.

The product company for underwear had strong sales of the fall and winter collections. Björn Borg Sport also contributed to the sales increase, while the Swedish wholesale operations declined in a continued weak Swedish retail market. The British wholesale operations continued to develop positively, however. Retail sales fell slightly, although this is the result of a conscious strategy with shorter discount periods, which has had a positive effect on gross profit margins. In e-commerce we continue to see good growth. Royalties decreased in line with lower brand sales during the quarter.

The nine-month period January–September 2012 Group sales during the first nine months amounted to 412.8 million kroner (61 million dollars). Björn Borg Sport, the underwear product company (external revenue) and the Group’s own British wholesale operations all developed positively during the period. The largest decline was in collection sales in the Swedish wholesale operations.

“Against the backdrop of a weak retail market in Europe, we are pleased to have been able to increase our revenues and operating profit during the third quarter. The work with Björn Borg’s future growth areas is continuing and we are seeing them contribute more to the Group’s performance. This applies to our own operations in England, which are growing at a positive pace, and the sportswear product area within Björn Borg Sport. In addition, we have now started selling in China and will very shortly open our first store,” said CEO Arthur Engel.