The Swedish outdoor group reported a 4 percent increase in net profit to 31 million Swedish kronor (€3.3m-$5.1m) for the first quarter of 2008, on 6 percent higher net sales of 222.8 million SEK (€23.8m-$36.8m). The pre-tax profit remained flat at 29.9 million SEK (€3.2m-$4.9m), but would have risen by 16 percent to 33.4 million SEK (€3.6m-$5.5m) on a constant currency basis.
Fenix Outdoor’s wholesale operations, represented by Fjällräven and other brands, had a higher operating profit of 32.5 million SEK (€3.5m-$5.4m) during the quarter, compared with 29.5 million SEK in the year-ago period, but it would have been even higher at 36 million SEK without the currency effect. Net sales were 6 percent higher at 179.3 million SEK (€19.2m-$29.6m). As a group, Fenix Oudoor was last year Sweden’s second-largest exporter of sporting goods after Peak Performance.
Late deliveries by some suppliers weighed heavily on the wholesale turnover during the quarter, limiting sales growth. Thanks largely to the acquisition of Hanwag, the German market came to represent 38 percent of the total wholesale turnover, with growth of 16 percent during the period.
Represented mainly by the group’s Naturkompaniet chain of outdoor shops in Sweden, the retail arm of the group produced an operating loss of 1.5 million SEK (€160,400-$247,440) for the first three months of the year, against a gain of 0.3 million SEK in the very good year-ago period. A bad winter season led the retailer to widen its off-season sales, affecting profits sharply. The division’s sales were up by 8 percent to 43.5 million SEK (€4.7m-$7.2m).
