The first quarter of 2007 brought a 5 percent increase in net income to 19.6 million Swedish kronor (€2.1m-$2.9m) for the parent company of Naturkompaniet, Fjällräven Tierra, Primus and Hanwag. Net sales increased by 8 percent to 209.5 million SEK (€22.8m-$30.7m), but they would have been up by 12 percent on a comparable basis. The operating profit (EBIT) rose by 7 percent to 29.8 million SEK (€3.2m-$4.4m).
The wholesale business of Fenix Outdoor recorded an 11 percent sales increase to 169.1 million SEK (€18.4m-$24.8m) and generated an operating profit of 29.5 million SEK (€3.2m-$4.3m), up by 2 percent from the same period a year ago. Volumes went up especially in Germany, which remains the biggest single market for the company’s products with a share of 35 percent.
Represented essentially by the Naturkompaniet chain of outdoor shops in Sweden, the group’s retail operations recorded a sales decline of 4 percent to 40.4 million SEK (€4.4m-$5.9m) because of the closing of its last two remaining stores in Norway last summer, but they contributed an operating profit of 0.3 million SEK (€32,000-$44,000m), against a loss of 0.9 million SEK in the year-ago period.
On a same-store basis, Naturkompaniet scored a commendable 13 percent sales increase in the quarter in spite of the unseasonably mild weather conditions in Sweden, which led to large clearance sales of winter merchandise. Nevertheless the gross margin remained on target and sales of Spring products went well during the month of March.
Naturkompaniet’s recovery was further highlighted by the results of a consumer survey conducted by GfK for the magazine Supermarket, showing the degree of customer satisfaction obtained by all kinds of chain retailers in Sweden. Over 61 percent of Naturkompaniet’s clients were satisfied with the level of service given at its stores, placing it in the #1 position in outdoor retailing. With a score of 70 percent, a higher degree of customer satisfaction was recorded in the broad sporting goods sector only by Löplabbet, a chain of stores specializing in running gear.
Naturkompaniet has recently expanded the range of services that it offers to customers by giving them the possibility to acquire all kinds of fishing licenses and permits at its stores.
