In announcing 15 percent growth in turnover during the first three quarters of 2008, Fenix Outdoor said it was expecting growth for the full year, as long as its Christmas sales reach average levels. Sales for the first nine months grew to 745 million Swedish kronor (€72.5m-$93.8m), with 24 percent higher sales for branded products in Germany to SEK 211.5 million (€20.6m-$26.6m). It projects turnover of SEK 939.5 million (€91.5m-$118.3m) for the full year.
The company’s operating profit before amortization and depreciation (EBITDA) grew by 20 percent during the nine-month period to SEK 120.1 million (€11.7m-$15.1m) compared with the same period the previous year. Net profits grew at an even faster rate of 40 percent to SEK 87.1 million (€8.5m-$11.0m) for the group.
Fenix Outdoor, the parent company, handles supplies and marketing for its brands, but has sourced out these functions for the Fjällräven brand to a subsidiary company. EBITDA for this part of the group grew to SEK 55.4 million (€5.4m-$7.0m) during the nine months compared with the year-ago period. Net profits came to SEK 45.7 million (€4.4m-$5.8m) compared with SEK 37.9 million.
The Swedish group’s turnover at wholesale from its various brands – Fjällräven, Tierra, Primus and Hanwag – grew by 16 percent to SEK 571.9 million (€55.7m-$72.0m) during the nine-month period, with up to 90 percent of sales made outside Sweden. Thirty-seven percent of total branded sales were made in Germany, where sales grew by 24 percent. The wholesale division’s EBITDA grew to SEK 107.4 million (€10.5m-$13.5m), from SEK 88.7 million in the year-ago period. Once adjusted for depreciated currencies, profits came to SEK 106.1 million (€10.3m-$13.4m), compared with SEK 87.9 million last year.
The retail side of the company, which consists of Naturkompaniet, saw its sales grow by 11 percent to SEK 173.1 million (€16.9m-$21.8m), compared with the first three quarters of 2007. Growth was only 3 percent during the period on a comparable store basis. EBITDA for the retail part of the group rose to SEK 12.7 million (€1.2m-$1.6m) from SEK 11.5 million in the year-ago period.
Fjällräven is launching a big marketing campaign as it celebrates its 30th anniversary and takes a step “back to its roots.” Next year the famous fox logo will be furrier to the touch (with a new textile label) and its website will be housed on a larger platform. The classic backpack is to be upgraded and users will be invited to send in nostalgia pictures showing the brand’s logo as it has evolved over the years.