New Wave Group realized a 4.2 percent increase in segment operating income to 140.2 million Swedish kroner (€12.5m) from SEK 134.5 million for the three months ended June 30. Segment sales declined by 1.4 percent to SEK 869.2 million (€77.6m) from SEK 881.5 million.
The group, which counts Craft, Cutter & Buck and Ahead among the 14 brands in the sports & leisure segment, saw its Q2 promotional sales rise by 7.6 percent to SEK 302.2 million (€24.0m) while retail sales fell by 5.6 percent to SEK 566.9 million (€54.1m) from SEK 600.6 million. Regionally, revenues were flat in Sweden at SEK 154.7 million (€13.8m) and in the U.S. at SEK 448.3 million (€40.0m) and down elsewhere. Revenues generated in Central Europe dipped by 6.2 percent to SEK 87.5 million (€7.8m); tumbled 10.3 percent in the Nordic region excluding Sweden at SEK 118.9 million (€10.6m), and contracted by 6.5 percent in Southern Europe to SEK 28.0 million (€2.5m). Sales in all Other Countries fell by 5.1 percent to €31.7 million (€2.8m).
In a statement, CEO Torsten Jansson said the company will face a challenging market over the next 2 to 3 quarters but can gain market share during that period. Over the last nine months, the group has acquired B.T.C. Activewear and the outdoor brand Tenson AB. “B.T.C. gives us a very strong base in the UK, and with Tenson, I am optimistic that we can create the same success as we have with Craft over time,” he said.
