CEO Torsten Jansson: ”We are opening another warehouse in the south of the US to improve customer service in that region.”
Sweden’s New Wave Sports, which includes the sportswear brands Craft, Cutter & Buck and Tenson, has issued an interim report for Q1 2025, showing continued positive development. Net sales increased by 9.5 percent and amounted to 2.18 billion Swedish krona (€200.1m). In local currencies, net sales increased by 9.0 percent. Operating result amounted to SEK 212 million (€20.0m), up from the previous year’s SEK 186 million (€17.0m).
Gross profit maintained, operating profit improved
Despite going through an intensive investment phase, New Wave continues to deliver strong numbers, according to Torsten Jansson, CEO and majority owner of New Wave Group. The gross profit margin remains stable at 49.8 percent, and operating profit increased by 14 percent to SEK 212 million (€20.0m), with an improved operating margin of 9.7 percent.
Cash flow, currency and equity ratio
Cash flow from operating activities remains stable for the company, increasing to SEK 219 million (€20.1m). At the end of the first quarter, the Swedish krona strengthened significantly against other currencies, which in the main impacted the balance sheet negatively and produced a substantial negative translation effect on equity of SEK 440 million (€40.4m). The equity ratio nonetheless increased by 0.1 percentage points to 63.8 percent.
Stable start with organic growth
”We have had a strong and stable start to 2025 despite a continuously challenging market and turbulent global conditions,” said Jansson. “This year, we achieved organic growth of 9.0 percent, the highest in a long time. Sales have benefited from a positive calendar effect, but the growth is strong even without it. It is also gratifying to see that all three segments are growing: Sports & Leisure grew by 11 percent, Corporate by 9 percent, and Gifts & Home Furnishings by 3 percent. Growth is also seen across both distribution channels – Promo by 12 percent and Retail by 6 percent.”
Bright future with expansion and continued investments
As he has previously told SGI Europe, Jansson does not think the Trump tariffs will have a major short-term effect on New Wave’s results.
”The only significant risk I foresee in the longer term,” he said, ”is an economic downturn or recession. In the short term, we may face increased costs if new tariffs are implemented quickly with short lead times, but with production in many countries across several continents, we are well prepared. From a perspective of six months or longer, this doesn’t concern me.”
In fact, New Wave Sports has cash to invest in the US, according to Jansson.
”The launch of Craft Teamwear in the U.S. is in full swing, and soon we will also launch Craft Teamwear in Canada,” he said. ”Additionally, we plan to establish another warehouse in southern USA to improve customer service in that region. In Ireland, we are actively searching for warehouse facilities to establish a new warehouse that will sell the majority of the group’s brands on the Irish market. Last but not least, we are preparing to launch Craft Teamwear in both England and Spain. As previously communicated, these expansions will have a short-term negative impact on results but will yield good returns in the longer term.”
