SWEDEN: Bjorn Borg H1 profit falls
Swedish underwear and swimwear label Bjorn Borg saw first-half profit hit as it invested in its Bjorn Borg Sport brand and expansion in the UK.
Over the half ended 30 June, net profit fell 26% to SEK27.1m. Net sales rose 2% to SEK253.3m. Gross profit margin fell to 51.6% from 53%, which the company attributed to operations of Bjorn Borg Sport.
For the quarter, net income fell 40% to SEK6.5m, despite sales increasing 1% to SEK101.9m. Gross profit margin decreased to 53.3% from 55.1% in the same period of the previous year. The company attributed the decline to the operations of Bjorn Borg Sport.
"Several of our new markets have developed strongly," said CEO Arthur Engel. "Operating profit [for the quarter] excluding the impact of our investments in Björn Borg Sport and in England was SEK12.9m compared with SEK13.9m in 2010, which is satisfactory given current market conditions. During the summer a highly publicised campaign, Björn [hearts] John, was launched as an element in our branding work."
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