Björn Borg posts 21% Q1 sales increase
Björn Borg, the Swedish fashion and sportswear label, has announced first quarter results for the period January-March 2016.
Net sales increased by 21% to SEK 158.1m (£13m) in Q1. Sales were not affected by exchange rates. Gross profit margin fell from 53.6% the previous year to 50%, which the company said was the result of a higher share of discounted sales, a change in the distribution mix at the wholesale level and slightly stronger foreign currencies.
Profit after tax was SEK 6.5m, down from 14.9m the previous year. The brand saw a 15% increase in like-for-like sales in its own stores, and ecommerce sales more than doubled with an 103% increase.
CEO Henrik Bunge said: "We are seeing positive trends in Sweden, England, Finland and the Netherlands, but in Norway and Belgium sales have dipped. Growth is mainly being driven by two product groups: underwear and footwear. The sports apparel collection is somewhat below expectations." He added: "I am proud of how much we have accomplished in a short time and that we have now posted another quarter that was better than the same period last year."
Björn Borg recently announced that it has acquired its UK subsidiary, as part of the group's strategy to become a more vertically integrated Björn Borg.
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