Bjorn Borg Q4 sales up 13 percent

Bjorn Borg’s fourth quarter 2012 net sales (October 1 to December 31, 2012) increased by

13 percent to 138.7 million Swedish kroner (22.05 million dollars). The figure for the corresponding period last year was 123.1 million Swedish kroner (19.57 million dollars). The group’s net sales for the financial year January 1 to December 31, 2012, increased by 3 percent to 551.4 million Swedish kroner (87.66 million dollars). Last year it was 536.5 million Swedish kroner (85.29 million dollars). The gross profit margin was 51.6 percent compared to 52.4 percent for the same period last year.

For this quarter operating profit recorded a growth amounted to 15.1 million Swedish kroner (2.40 million dollars), Last year it was 14.1 million Swedish kroner (2.24 million dollars). For the fourth quarter, profit after tax amounted to 11.9 million Swedish kroner (1.89 million dollars). Earnings per share before and after dilution amounted to 0.45 Swedish kroner (0.07 dollar). Brand sales (excluding VAT) decreased by 2 percent to 376 million Swedish kroner (59.78 million dollars).

For the full year, the gross profit margin was 50.2 percent. Profit after tax amounted to 47.2 million Swedish kroner (7.50 million dollars). Earnings per share before and after dilution amounted to 2.11 Swedish kroner (0.34 dollars), EPS foe the same period last year was amounted to 4.19 Swedish kroner (0.67 dollar). The group’s net sales increased by 3 percent to 551.4 million Swedish kroner (87.66 million dollars), for the same period last year it was 536.5 million Swedish kroner (85.29 million dollars). Excluding currency effects, sales rose 2 percent. Profit after tax amounted to 47.2 million Swedish kroner compared (7.50 million dollars) to 100.2 million Swedish kroner (15.93 million dollars). Earnings per share before and after dilution amounted to 2.11 Swedish kroner (0.34 dollar), last year it was 4.19 Swedish kroner (0.67 dollar).

“On the whole, Björn Borg reported stable development in 2012. We had a tough start to the year, but finished with a strong fourth quarter with increased sales and improved operating profit compared with the previous year, despite a weak market. The recently announced acquisition of the Finnish operations is another component in our continued expansion. It is our sixth largest market and we see good opportunities to further develop our operations,” said CEO Arthur Engel. “Underwear is our core business and we are maintaining a fast pace of product development. An important effort in recent years is the sportswear operations within Björn Borg Sport. The first collections, launched in 2012, have been positively received to date in nearly ten markets. Sales are steadily increasing and we see the potential for fine development in 2013 as well.”

Björn Borg has recently announced the acquisition of its Finnish distributor. Finland is the group’s sixth largest market. The group’s operations in England also developed well during the year, with more sales locations and increased sales. The group has now established operations in China. During the second half of 2012 it opened its first sales locations in Shanghai. Bjorn Borg e-commerce has developed strongly in recent years.