Björn Borg registered sales of 131.4 million Swedish kronor (€15.3m-$19.9m) for the first quarter ended March 31, representing a 6 percent decline from a year earlier. Excluding currency effects, sales slipped by 4 percent. The decline was partly due to a smaller volume of spring and summer underwear being delivered compared with last year, combined with the continuous weakness in European retail markets. Retail sales edged down by 3 percent, while wholesale revenues grew by 13 percent. Net earnings for the quarter were down to SEK6 million (€0.7m-$0.9m) from SEK9.3 million in the same period last year. The gross margin improved to 49.4 percent from 48.0 percent. The Swedish company said that while its operations in the U.K., Belgium and Finland developed positively, it is not pleased with its Chinese operations and is now evaluating options on how to proceed in this market. As of March 31, 2013, there were a total of 57 Björn Borg stores. The company owns the Björn Borg trademark and its core business is underwear, which accounted for 54 percent of brand sales during the quarter. Björn Borg also sells sportswear, fragrances, footwear, luggage, bags and eyewear.