Björn Borg Q2 net sales up 2 percent but decline 4 percent in H1

The Björn Borg Group’s net sales amounted to 99.2 million Swedish krona (11.4 million dollars) during the second quarter, an increase of 2 percent. Excluding currency effects, net sales fell by 5 percent. The fall/winter collection for the sports apparel product company contributed positively to the sales increase. For the first half, the Group’s net sales amounted to 230.3 million Swedish krona (26.6 million dollars) during the first half-year, a decrease of 4 percent. Excluding currency effects, sales declined by 11 percent.

Releasing its interim report for the second quarter, Björn Borg said that distributors and licensees reported slightly lower sales, mainly in underwear and bags. Brand sales excluding VAT decreased by 3 percent to 246 million Swedish krona (28.4 million dollars) for the second quarter, but increased by 1 percent to 640 million Swedish krona (74 million dollars) for the first half-year. Adjusted for currency effects, brand sales were down 5 percent for the quarter and 2 percent for the first half-year.

Brand sales in the underwear product area fell by 2 percent in the first half-year. Underwear accounted for 57 percent of brand sales. Sports apparel saw a slight increase in brand sales. In the bags and eyewear product areas sales were essentially unchanged, while sales in the footwear product area increased. In total, sales of licensed products rose by 4 percent in the first half-year.

Among large markets, Sweden and Norway saw good growth, while Belgium retreated. Finland, Denmark and the Netherlands reported slightly smaller changes than the previous year. Among smaller markets, it was a tough first half-year for England, which lost ground compared with the previous year. The Björn Borg store in Linköping and distributor-operated store in Slovenia were closed. As of June 30, 2015 there were a total of 38 Björn Borg stores, of which 17 are Group-owned.

The gross profit margin for the second quarter increased to 53 percent. Excluding currency effects, the margin would have been over 54 percent. The gross profit margin for the first half-year increased to 53.4 percent, excluding currency effects, the margin would have still been 54 percent.

The Group consists of a total of 13 companies, nine of which operate under the Björn Borg brand on every level from product development to wholesaling and consumer sales in its own Björn Borg stores. The Björn Borg Group is the exclusive wholesaler of underwear, sports apparel and adjacent products in Sweden, Finland and England as well as footwear in Sweden, Finland and the Baltic countries. The business segment’s operating revenue decreased by 4 percent during the first half-year 2015. The British and Finnish operations and footwear wholesaling saw lower sales year-on-year. Swedish underwear wholesaling instead reported higher sales during the half-year.

The Björn Borg Group owns and operates a total of 17 stores and factory outlets in Sweden, Finland and England that sell underwear, sports apparel, adjacent products and other licensed products. Björn Borg also sells online through Bjornborg.com. Operating revenue in the retail segment increased by 19 percent during the first half and external net sales rose by 24 percent during the period. The increase is mainly due to continued strong performance in e-commerce during the half-year, but also because the Group-owned Swedish stores developed positively during the period. Sales for outlets and comparable Björn Borg stores in Sweden rose by 10 percent year-on-year.