Björn Borg Q1 net sales fall 6 percent

For the first quarter (January 1, 2013 to March 31, 2013)

Björn Borg’s net sales fell by 6 percent. Gross profit margin was 49.4 percent. Operating profit decreased during the quarter by 37 percent. Profit after tax amounted to 6 million Swedish kroner (0.9 million dollars).

“In the first quarter 2013 we reported a decline in sales. At the same time we still see a need to expand wisely for future growth. During the quarter we took an important step through the acquisition of the Finnish operations from the former distributor,” said CEO Arthur Engel.

Brand sales in the underwear product area fell by 8 percent in the first quarter, in line with a weak wholesale market in Europe. Underwear accounted for 54 percent of brand sales during the period. Sales in the sportswear and eyewear product areas noted solid increases during the quarter. The footwear product area saw a slight increase, while bags and fragrances reported declines. In total, sales of other products increased by 3 percent during the quarter.

As of March 31, 2013, there were a total of 57 Björn Borg stores. The group owns the Björn Borg trademark and its core business is underwear. It also offers sportswear and fragrances, and footwear, luggage and bags and eyewear.