• H1 profit down 55.3% to SEK13.7m
  • Sales fall 3% to SEK246m
  • Company remains confident 

Swedish clothing brand Björn Borg saw first-half net profit fall on the back of a decline in sales, higher expenses and investments in its Chinese and UK operations.

Net profit declined 55.3% to SEK13.7m (US$2m) over the six months ended 30 June. Operating profit slumped 46.8% to SEK19.5m, and gross margin fell to 49.8% from 51.6% last year.

Net sales slipped 3% to SEK246m, while sales were down 5% excluding currency effects. Brand sales, excluding VAT, edged down 1% to SEK736m.

"We are pleased to report stable sales in a continued weak market during the second quarter," CEO Arthur Engel said.

"The investments we have made in our future growth in recent years are beginning to contribute more to revenues, although earnings are still being adversely affected by the costs."

Looking forward, the group said it will open its first store in China at the end of the month. Engel said: "We remain confident about our development during the rest of the year."