• Q3 profit down 74% to SEK19.3m
  • Sales drop 10% to SEK1,002m
  • Sees slower rate of sales decline in Q4

Swedish clothing and workwear supplier New Wave Group AB has seen its third quarter profit plunge by 74%, which it blamed on weak sales of promotional apparel particularly in the American market.

For the three months to 30 September, profit after tax tumbled to SEK19.3m (US$2.8m), down from SEK74.7m a year earlier.

Sales were down 10% to SEK1,002m, with a 20% drop in its promo business, a 2% fall in sports and leisure, and a 5% decline in gifts and interior.

By region, turnover fell 8% in the Nordic countries, mainly in Sweden and Finland. Sales in Europe were down 11% and in North America by 16%.

Looking ahead, the company expects the rate of sales decline to slow during the fourth quarter, but says revenues will be better than the same period last year.

It also notes: "For 2010 we see a considerably more stable market - and in the US we are already seeing a turnaround in orders for Cutter & Buck."