Björn Borg Q2 sales up by 3 percentWednesday, 22 August 2012
The interim report of Björn Borg reported positive development in a continued
weak market for second quarter of 2012. The group’s net sales increased by three percent to 105.5 million Swedish kroner (SEK) (15.84 million US dollars) compared to sales for the same period last year.
The gross profit margin was 52.1 percent. Operating profit amounted to SEK 4.8 million (0.72 million US dollars). Profit after tax amounted to SEK one million (0.15 million US dollars). Earnings per share amounted to SEK 0.10 (0.02 US dollars). Brand sales (excluding VAT) decreased by eight percent to SEK 288 million (43.23 million US dollars). The decrease was the same excluding currency effects.
“We are pleased to report stable sales in a continued weak market during the second quarter. 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. In late August we are opening our first sales location in China and our operations in England are developing well. We remain confident about our development during the rest of the year,” said CEO Arthur Engel.
For the first half, group’s net sales decreased by three percent to SEK 246.0 million (36.93 million US dollars). Excluding currency effects, sales were down 5 percent. The gross profit margin was 49.8 percent. Operating profit amounted to SEK 19.5 million (2.93 million US dollars). Profit after tax amounted to SEK 10.3 million (1.55 million US dollars). Earnings per share amounted to SEK 0.55 (0.08 US dollars).
Björn Borg is a Swedish company that owns and develops the Björn Borg brand. The products are sold in around 15 markets, the largest of which are Holland and Sweden.