New Wave Group reported a 10.9 percent decline in Q3 net profit to 270.9 million Swedish kroner (€23.2m) from SEK 304.0m for the three months ended Sep. 30. Period operating profit declined by 4.2 percent to SEK 381.1 million (€32.6m) despite 5 percent revenue growth to SEK 2.34 billion (€199.8m) from SEK 2.23 billion. Sales were positively impacted by currency and acquired business, including B.T.C. Activewear. But overall gross margin slipped by 80 basis points to 48.6 percent from 49.4 percent due to last year’s acquisition of B.T.C., which has a lower gross margin than the group.
The company, which counts Craft, Cutter & Buck, and Ahead among the brands in its sports & leisure segment, had flat year-over-year retail sales at SEK 746.5 million (€63.9m) and realized 2.3 percent growth in the promotional category to SEK 269.9 million (€23.1m). Revenues had a positive contribution of SEK 6.5 million from the Tenson AB acquisition. Segment operating income declined by 9.6 percent to SEK 180.3 million (€15.4m) due to higher costs that included more marketing spending.
