The segment sales for the Swedish company´s sports & leisure unit rosed by 7 percent to €350.9 million.
New Wave Group, which is expanding its Craft teamwear business into Canada this year, generated a 7 percent increase in operating income to 180.9 million Swedish krona (€15.9m) on 6 percent segment revenue growth to SEK 1,139.7 million (€100.7m) for the three months ended Dec. 31. Promotional sales rose by 16.5 percent to SEK 364.0 million (€33.0m) and retail revenues grew by 2.2 percent year-over-year to SEK 775.7 million (€68.2m). The US business grew by 2.8 percent to SEK 515.6 million (€45.4m) while sales in Southern European countries increased by 14 percent to SEK 31.0 million.
Revenues increased, profit tumbled
For FY24, the Swedish group that counts Craft, Cutter & Buck, and Ahead among the brands in its sports & leisure unit, saw segment operating profit tumble by 12 percent to SEK 544.5 million (€45.9m) from SEK 617.7 million. Annual segment sales rose by 7 percent to SEK 3,988.3 million (€350.9m) from SEK 3,874.6 million. Promotional revenues increased by 9.8 percent to SEK 1,243.6 million (€109.4m) as retail sales came in flat at SEK 2,744.7 million (€241.5m). Geographically, US sports and leisure annual revenues grew by 2.6 percent to SEK 1,867.0 million (€164.3m) and by 15 percent in all Central European markets to SEK 491.5 million (€43.2m).
New Wave, which is in an “excellent position” for high growth in North America and Europe, according to CEO Torsten Jansson, is planning for additional brands and product lines in both North America and Europe that will primarily be in the promotional area. Additionally, the company sees growth potential for Craft in several product groups and regions.
