New Wave Group, which boasts 13 brands in its sports & leisure unit, reported a 35 percent increase in Q1 operating profit to 128.0 million Swedish kronor (€11.4m) for the period ended March 31. Segment sales increased by 23 percent to SEK 917.4 million (€81.9m) from SEK 746.6 million. Regionally, the U.S. paced all growth, rising by 31 percent to SEK 436.1 million (€38.9m). Segment sales across Europe, including the company’s home Swedish market, increased by 17 percent to SEK 439.6 million (€39.3m) as Q1 sales in all other countries outside Europe and the U.S. improved by 14 percent to SEK 41.8 million (€3.7m).
Overall, the group, which also operates corporate and gift/home furnishings segments, generated a 43 percent increase in Q1 Ebit to SEK 285.0 million (€25.5m) as total period revenues rose by 24 percent to SEK 1,051.9 million (€93.9m) from SEK 851.4 million. Gross margin improved by 320 basis points to 50.7 percent from 47.5 percent.
“We have a lot of growth left in already developed products, such as in Craft shoes and teamwear, where we have only seen the beginning,” said Torsten Jansson, CEO. New Wave, which acquired B.T.C. Activewear last year, said it remains open to additional acquisitions.
