New Wave Group AB Annual_report_2018_EN_HQ | Page 27

NWG // SPORTS & LEISURE
Approximately 70-75 % of sales in
the retail trade take place through
pre-orders. In connection with orders
from customers, the Group places orders
at the factory, which significantly limits
the obsolescence risk. The remaining
sales in the retail sector, so-called
complementary sales, are mainly basic
goods with a limited fashion risk.
The bulk of the inventory relating
to the retail trade, has less fashion-
sensitive areas such as Craft's functional
underwear and club collections as well as
Clique's basic garments.
The capital tied up in inventories
for promo is higher but is a prerequisite
for success in the promo sales channel.
A company or association that, for
example, orders promowear is dependent
on the supplier being able to deliver a
full size sorting and the right colours.
However, the risk of obsolescence is
low because a larger part of the range
is timeless basic products that there is a
need for season after season. Many of the
products are common to both the promo
and retail channels, which offers signi-
ficant risk diversification, and means
that catalogues can also be in common.
In order to limit the currency risk
in the retail channel, approximately
50-75 % of the currency-exposed
purchasing costs are hedged. Within
the promo sales channel, adjustment
for changed purchasing prices is made
continuously as it is about immediate
sales. The currency risk can thus be
limited.
Regarding the capital tied up in
accounts receivable, sales are made to
selected retailers and the credit losses
are low. However, there is a higher
concentration to a fewer number of
retail customers compared to the
promo market. In 2018, the confirmed
credit losses in the operating segment
amounted to 0.09 (0.17) % of net sales.
2018
Trademarks
Sköna Marie PAX
Termo Paris Glove
Sköna Marie is a classic Swedish shoe
brand that manufactures functional
high-quality women’s shoes. Sköna
Marie always uses the very best raw
materials and most models are made of
real leather, a breathable, soft and very
comfortable material. The shoes are
sold through a nationwide network of
retailers in shoe- and health trading as
well as e-commerce. Main competitors
are Ecco, Rieker and the shoe retailers’
own brands.
Termo is one of our most recent brand
acquisitions and, at the same time, one
of our oldest brands as the products
have their roots since their beginning in
1921. Termo is a complete collection of
underwear and functional garments of
knitted wear for different professional
groups, but is also used extensively by
hunters, adventurers and athletes. The
materials are developed and produced
in their own knitting factory in Sweden
and the garments are designed and
constructed in the company’s own
design and sewing department. Termo
has its largest sales in Europe where
for many years it has been a leading
supplier of functional underwear to
police and military authorities.
PAX has for more than 90 years
been dedicated to manufacturing
high-quality shoes for children and
is nowadays one of Sweden’s most
prominent shoe manufacturers. High
functionality, carefully selected mate-
rials and innovative design is PAX’s
insignia. The shoes are sold through a
nationwide network of retailers and
the e-commerce. Main competitors are
the shoe retailers’ own brands as well
as Ecco, Kavat and Viking.
Paris Glove was founded in 1945
and has a long experience of
producing fashionable gloves and
winter accessories. Paris grew from
a small domestic manufacturing
company in the fashion capital of
Canada, Montreal, to becoming
a leader in global sourcing. The
company continues to drive new
Canadian design concepts and
collections in order to stay at the
forefront of winter accessory trends.
Products made from leather, suede
and shearling as well as knitted
mittens make up the annual offering
that customers enjoy during the cold
winter months in North America.
ANNUAL REPORT // 027