Bjorn Borg AB released its interim report for the first quarter ended March 31, 2012. The group’s net sales decreased by 7 percent to SEK 140.5 million (151.3). Excluding currency effects, sales were down 8 percent. The huge investments made by the group in the quarter have adversely affected profits.
“We leave behind a weak quarter. Sales were adversely affected by cautious purchasing during the fall and profit was weighed down by higher scheduled expenses, not least from our investments in new markets and a highly publicized branding event in London. We have also seen growing brand sales with an increase for smaller markets, as well as continued strength in e-commerce. We estimate that the inventory levels at our partners have decreased since the beginning of the year, and we confidently look forward to the rest of 2012,” said CEO Arthur Engel.
The gross profit margin was 48 percent (50.4). Whereas operating profit amounted to SEK 14.6 million (28.4). Profit after tax amounted to SEK 9.3 million (20.7). Earnings per share amounted to SEK 0.44 (0.89). Fully diluted earnings per share amounted to SEK 0.44 (0.88). Brand sales (excluding VAT) increased by 4 percent to SEK 448 million (431).
The group based in Stockholm owns the Björn Borg trademark and its operations are focused on underwear. Its products are sold in around fifteen markets, of which Sweden and Holland are the largest.