Sweden’s New Wave Group, which owns brands like Craft and Cutter & Back, saw total sales in the second quarter ended June 30 rise by 13 percent as compared to the year earlier to 1,487 million Swedish kronor (€145.7m-$171.1m), led by a 70 percent increase in its Sports & Leisure unit. At constant currency rates, group sales went up by 18 percent.

New Wave’s gross margin widened to 48.3 percent from 39.2 percent in the second quarter of 2020, with higher margins for all business segments. The quarterly operating doubled to 16.2 percent from 8.4 percent. Net profit grew to SEK 187.7 million (€18.4m-$21.6m) from SEK 72.9 million.

New Wave’s Sports & Leisure unit saw sales in the quarter jump by 70 percent to SEK 575.5 million (€56.4m-$66.2m), recording gains in all geographical regions. The unit registered an operating profit of SEK 108.8 million (€10.7m-$12.5m), against an operating loss of SEK 5.4 million the year earlier.

Sales at New Wave’s corporate segment fell by 15 percent to SEK 708.8 million (€69.4m-$81.4m) while operating profit inched up to SEK 117.5 million (€11.5m-$13.5m) from SEK 112.0 million.

Group sales via the promo sales channel decreased by one percent to SEK 935.1 million (€91.6m-$107.6m) while retail sales improved by 51 percent to SEK 551.7 million (€54.1m-$63.5m).

Group sales increased by 85 percent in the U.S., while they were up by 48 percent in Sweden and 56 percent higher in the other Nordic countries. Sales in Central Europe increased by 29 percent. All these markets saw growth in all business segments.

On the other hand, sales in Southern Europe tumbled by 46 percent, due to a slump in the corporate segment, with gains instead seen in Sports & Leisure and Gifts & Home Furnishings. Sales decreased by 28 percent in other countries, with Sports & Leisure the only segment to post an increase.

Torsten Jansson, the group’s CEO, said that the company currently anticipates “continued good sales recovery” during the autumn, although the Covid pandemic remains a concern. He noted that New Wave will face strong comparables from the previous year in the last two quarters of 2020.