Group net sales from Swedish firm Björn Borg amounted to 161.5 million Swedish kronor (€15.2 million) in the quarter ended June 30, a decrease of 0.8 percent compared to the second quarter of last year. Adjusted for currency effects, revenues decreased by 4.2 percent. The sales decline was mainly attributed to a temporary decrease in demand from e-tailers within the wholesale business, particularly in Germany and Sweden. Results during the quarter were also impacted by more expensive raw materials, higher freight costs, rising inflation, unfavorable exchange rates and declining consumer sentiment, the company said.
The gross profit margin was down to 54.5 percent from 56.3 in the second quarter of last year. Currency neutral, the gross profit margin was 59.6 percent, representing an increase of 3.3 percentage points. The period’s operating profit amounted to SEK 5.2 million (€489,700), down from SEK 19.3 million (€1.8 million). On a positive note, the company experienced strong growth in its own e-commerce, which increased by 18 percent to SEK 27.0 million (€2.5 million). Also, own comparable stores increased by 11 percent during the quarter.
By product category, underwear sales lost 11 percent, while the other product groups performed well. Sports apparel grew by 9 percent and other product areas up by 7 percent, primarily driven by bags. Footwear sales increased by 125 percent, mainly due to a timing effect in distribution. The company also experienced a ”continued strong underlying trend” regarding health, training and well-being.
By geographical area, the company’s largest market, Sweden, showed similar sales to the previous year’s second quarter. The second largest market, the Netherlands, was down by 14 percent. Finland increased by 23 percent, while Germany decreased by 37 percent. Denmark and Belgium increased by 29 and 12 percent, respectively. Other smaller markets increased by a total of 36 percent.
The Björn Borg Group owns the Björn Borg trademark. Its core business includes underwear, sportswear and bags. The company also offers footwear and eyewear through licensees. Björn Borg products are sold in around twenty markets. The Björn Borg share has been listed on Nasdaq Stockholm since 2007.
