Bjorn Borg AB announces results for the third quarter ending September 30, 2013 and for nine months period beginning January to September 2013.
JULY 1 – SEPTEMBER 30, 2013
- The Group’s net sales decreased by 4 percent to SEK 159.8 million (166.8). Excluding currency effects, sales decreased by 3 percent.
- The gross profit margin was 51.7 percent (49.5).
- Operating profit amounted to SEK 23.6 million (35.2).
- Profit after tax amounted to SEK 15.5 million (25.1).
- Earnings per share before and after dilution amounted to SEK 0.74 (1.11).
- During the quarter the Board of Directors decided to discontinue the operations in China in 2013.
- The Dutch distributor sought in September to reconstruct its retail operations.
At the end of the quarter CEO Arthur Engel announced he is leaving the company. Vice President Henrik Fischer is taking over as Acting CEO from 11 November.
JANUARY 1 – SEPTEMBER 30, 2013
- The Group’s net sales decreased by 3 percent to SEK 399.0 million (412.8). Excluding currency effects, sales were down 1 percent.
- The gross profit margin was 50.5 percent (49.7).
- Operating profit amounted to SEK 33.7 million (54.7).
- Profit after tax amounted to SEK 24.9 million (35.3).
- Earnings per share before and after dilution amounted to SEK 1.26 (1.65).
QUOTE FROM THE CEO
“We saw a slight decline in revenue in the third quarter, from lower purchases from the Netherlands. The drop in earnings comes from the deterioration in sales to the Netherlands as well as costs for marketing activities and for the operations in China, which we are now in the process of winding down.
"Obviously, we are not pleased with this weak performance, but at the same time there are factors that suggest opportunities for greater stability going forward. For example, our retail sales rose by 11 percent during the quarter for comparable units,” said Arthur Engel, who is stepping down from his position as CEO of Björn Borg in connection with this report. Vice President Henrik Fischer is taking over as Acting CEO.
The Björn Borg
The Group owns the Björn Borg trademark and its core business is underwear. It also offers sportswear and fragrances as well as footwear, luggage & bags and eyewear through licensees. Björn Borg products are sold in around thirty markets, of which Sweden and the Netherlands are the largest. The Björn Borg Group has operations at every level from branding to consumer sales in its own Björn Borg stores.
