The Björn Borg group has reported an 8.7 percent decline in net profit for the first half to SEK9.4 million (€1.1m-$1.4m). The Swedish company's sales decreased by 3 percent to SEK239.2 million (€27.5m-$36.8m), but were unchanged on a currency-neutral basis. The gross profit margin dropped slightly to 49.7 percent, as compared to 49.8 percent in the January-June period last year. During the second quarter, however, net earnings more than doubled to SEK3.4 million (€0.39m-$0.52m). Sales also increased during the April-June quarter, rising by 2 percent to SEK107.8 million (€12.4m-$16.6m), with growth of 5 percent at constant currencies. The sales increase in the last quarter was mainly driven by positive developments in retail operations, both in Björn Borg stores and e-commerce. The Swedish Björn Borg stores raised sales by 8 percent during the quarter, up by 3 percent on a comparable store basis. The operations in Finland, which the group acquired in the first quarter, contributed positively to the group's results. A new Björn Borg store, the second in the country, will open in the popular Forum mall in Helsinki this autumn. In contrast, results were negatively impacted by the weak retail climate in the Netherlands and increased expenses for operations in China. Regarding China, the group's management said that it is still evaluating various alternatives, including the possible discontinuation of its operations there before the end of 2013.

Topics