Represented by its Naturkompaniet stores, the retail operations of the Swedish group are performing particularly well, with a 23 percent increase in comparable store sales during the 3rd quarter in spite of mild weather conditions. Attributing the continuously positive score to a deeper and broader assortment and to good investments after the shutdown of under-performing stores, Fenix Outdoor announces a new phase of expansion with the opening of the 22nd Naturkompaniet store in Malmö.
Fenix’ retail operations generated an operating profit of 6.4 million Swedish kronor (€0.69m-$0.90m) in the nine months ended Sept. 30, compared with a loss of 3.9 million SEK in the comparable 2005 period. Their net sales grew by 19 percent to 143.8 million SEK (€15.5m-$20.3m), with same-store sales up by 22 percent.
Meanwhile, Fjällräven and the other wholesale brands distributed by the group improved their operating earnings by 7 percent for the nine months to 72.0 million SEK (€7.8m-$10.2m) on 13 percent higher net sales of 434.0 million SEK (€46.8m-$61.3m). Excluding currency exchange variations, the results would have increased by 25 percent.
Overall, the group booked a net profit of 48.6 million SEK (€5.2m-$6.9m) during the 9-month period, up by 20 percent from the year-ago level. Operating profit grew by 23 percent to 78.4 million SEK (€8.4m-$11.1m), but it would have increased by 45 percent on a currency-neutral basis. Net group revenues rose by 14 percent to 577.8 million SEK.