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Björn Borg net sales down 9 percent in fiscal '13

By FashionUnited

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Fashion

REPORT_ Björn Borg has reported that its net sales in the fourth quarter between October 1 to December 31, 2013 decreased by 28 percent to 100.3 million Swedish krona (15.5 million dollars). The decrease was the same excluding currency effects. The gross profit margin was 52.5 percent,

whereas operating loss was 12.5 million Swedish krona (1.9 million dollars), against year-earlier profit of 15.1 million Swedish krona (2.3 million dollars. Earnings per share before and after dilution amounted to -0.40 Swedish krona (around 0.06 dollars). Brand sales decreased by 12 percent.



For the

full year, from January 1 to December 31, 2013, group’s net sales decreased by 9 percent to 499.2 million Swedish krona (77.3 million dollars). Excluding currency effects, sales were down 8 percent. The operating profit for 2013 was negatively affected with about 12 million (1.8 million dollars) from delayed shipments, and with non-recurring items of about 14 million Swedish krona (2.1 million dollars), referring to the Chinese business and the resigning CEO, in total about 26 million Swedish krona (4 million dollars). Earnings per share before and after dilution amounted to 0.86 Swedish krona (0.13 dollars).

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.



Bjorn Borg