Björn Borg net sales down 9 percent in fiscal '13
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Brand sales decreased by 5 percent, excluding currency effects, the decrease was 4 percent. The Board of Directors has decided to propose to the Annual General Meeting a distribution of 1.50 Swedish krona (0.23 dollars) per share, totaling 37.7 million Swedish krona (5.8 million dollars).
“As reported earlier this year, 2013 was marked by continued weak retail demand in many of Björn Borg’s markets, particularly the Netherlands. Together with the major shipment delays at the end of the year and disposal costs for the Chinese operations, this contributed to the significant decline in sales and earnings we are reporting for the full year and the fourth quarter. Our operations in England and Finland are developing positively, as are our own retail and e-commerce operations,” said Henrik Fischer, Acting CEO, commenting on the results.
Brand sales in the underwear product area fell by 9 percent for the full-year. Underwear accounted for 60 percent of brand sales. Sportswear performed well during the year in terms of brand sales, but less so in terms of revenue for the company. In other product areas, footwear and eyewear noted increases, while bags and fragrances saw declines. In total, sales of licensed products rose by 2 percent during the year.
As of 2013 Finland is reported as a separate market. Among large markets, Belgium and Finland saw good growth and Denmark also developed positively. The Netherlands, Sweden and Norway reported declined. Among Björn Borg’s smaller markets, England and France posted good growth numbers. On the other hand, the company decided during the third quarter to discontinue Björn Borg’s operations in China in 2013. The exit has progressed according to plan, and as of January 1, 2014 the company is dormant.