Intersport Sverige has reported a net loss of approximately 118 million Swedish kronor (€13.7m-$17.9m) for 2012, compared with a profit of just under SEK6 million in 2011. The main reasons for the loss, according to the company, were the relocation of a warehouse in the course of last year and a change in the logistic provider from DHL to Schenker.
Large stocks early in the year and a poorly implemented relocation project meant increased costs. The company stressed that these should be seen as one-time costs and that they will be reduced by SEK 30 million (€3.5m-$4.5m) this year. The wholesale business weighed heavily on the company's finances and contributed to the worse-than-expected results.
Retail sales at Intersport stores amounted in 2012 to just over SEK 3.3 billion (€384.1m-$499.0m), excluding VAT, which was an increase of 2.2 percent when compared with the previous year. The company said that its sales were affected by an unusually mild start to the last winter season.
According to Intersport, the outlook for 2013 remains tough, in view of an increasingly competitive market and cautious spending by consumers. The company says that it is commercially prepared for a tough year and sees the potential to become profitable again through a new strategy and a new business plan.
As previously reported, the Swedish Intersport put on ice a controversial project to take over control of its affiliated retailers at the end of 2011. Fredrik Johansson, the chief executive at the time, said that he wanted to implement the change of ownership within the following six to 24 months. He resigned last summer.