• Q4 profit after tax tumbled to SEK11.9m (US$1.9m) from SEK49m
  • Net sales increased 13% to SEK138.7m from SEK123.1m 
  • Gross margin down to 51.6% from 52.4%

Swedish clothing company Björn Borg AB has seen its fourth-quarter and full-year profit fall after overseas investments and lower margins offset a rise in sales.

"On the whole, Björn Borg reported stable development in 2012," commented CEO Arthur Engel. "We had a tough start to the year, but finished with a strong fourth quarter with increased sales and improved operating profit compared with the previous year, despite a weak market.

"The recently announced acquisition of the Finnish operations is another component in our continued expansion. It is our sixth largest market and we see good opportunities to further develop our operations." 

Show the press release

 

BJÖRN BORG AB YEAR-END REPORT JANUARY - DECEMBER 2012
2013-02-14 07:30

Positive fourth quarter – continued weak market

OCTOBER 1 – DECEMBER 31, 2012

  • The Group’s net sales increased by 13 percent to SEK 138.7 million (123.1). Excluding currency effects, sales increased by 14 percent.
  • The gross profit margin was 51.6 percent (52.4).
  • Operating profit amounted to SEK 15.1 million (14.1).
  • Investments in Björn Borg Sport, China and England reduced operating profit by SEK 3.5 million (1.5).
  • Profit after tax amounted to SEK 11.9 million (49.0).*
  • Earnings per share before and after dilution amounted to SEK 0.45 (1.92).*
  • Brand sales** (excluding VAT) decreased by 2 percent to SEK 376 million (384). Excluding currency effects, brand sales were unchanged.
  • Björn Borg has recently announced the acquisition of its Finnish distributor.

JANUARY 1 – DECEMBER 31, 2012

  • The Group’s net sales increased by 3 percent to SEK 551.4 million (536.5). Excluding currency effects, sales rose 2 percent.
  • The gross profit margin was 50.2 percent (51.5).
  • Operating profit amounted to SEK 69.8 million (83.7).
  • Investments in Björn Borg Sport, China and England reduced operating profit by SEK 21.4 million (15.1).
  • Profit after tax amounted to SEK 47.2 million (100.2).*
  • Earnings per share before and after dilution amounted to SEK 2.11 (4.19).*
  • Brand sales** (excluding VAT) decreased by 5 percent to SEK 1,598 million (1,681). Excluding currency effects, the decrease was 3 percent.
  • The Board of Directors has recommended that the Annual General Meeting approve a distribution of SEK 3.00 (4.00) per share, totaling SEK 75.4 million (100.6).

QUOTE FROM THE CEO
“On the whole, Björn Borg reported stable development in 2012. We had a tough start to the year, but finished with a strong fourth quarter with increased sales and improved operating profit compared with the previous year, despite a weak market. The recently announced acquisition of the Finnish operations is another component in our continued expansion. It is our sixth largest market and we see good opportunities to further develop our operations,” said CEO Arthur Engel.

 

Original source: http://corporate.bjornborg.com/en/financial-reports?afw_id=1269271