Björn Borg currency neutral operating profit, adjusted for non-recurring items, rose 1.5 percent to 53.2 million Swedish kronor. Reported operating profit declined 42 percent to SEK 30.6 million (€2.9m) from SEK 52.4 million for the period ended Sept. 30. The operating margin declined 12.3 percent from 21.8 percent in the year-ago period. Group net income was down 45 percent to SEK 22.2 million (€2.1m) from SEK 40.1 million.
Third quarter revenues rose 3.5 percent in reported currency to SEK 248.6 million (€23.4m) from SEK 240.1 million as wholesale gained 5 percent, brick-and-mortar sales rose 19 percent, and own e-commerce revenues increased 28 percent to SEK 29.5 million (€2.9m). The gross margin came in at 48.2 percent versus 54.4 percent.
Year-over-year implied sales by category showed a 7.1 percent decline in underwear sales to SEK 129.27 million (€12.2m), 15.8 percent growth in sports apparel revenues to SEK 47.23 million (€4.4m), a 5.0 percent drop in footwear sales to SEK 27.35 million (€2.6m); and a 44 percent increase in other sales to SEK 44.8 million (€4.2m). By geography, sales in Sweden inched 0.7 percent higher to SEK 87.01 million (€8.2m), fell by 10.4 percent in The Netherlands to SEK 47.3 million (€4.5m) and were flat in Germany at SEK 19.2 million (€1.8m).
