CEO COMMENTS
OCTOBER - DECEMBER
Once again a quarter with growth. Net sales increased by 4 %
(1 % in local currencies) to SEK 2,024.1 million, which is the
highest sales we have ever had in a quarter.
Gross profit remains stable and amounted to 46.7 (46.4) %.
We were negatively affected at the end of the year in terms of
sales of winter products such as jackets, gloves, hats, scarves, etc.
The warm weather mainly affected our sports brands, but also
workwear to some extent. Unfortunately, the warm weather has
continued into the first quarter.
External costs decreased by SEK 6.1 million (SEK 46.8 million
incl. IFRS 16) compared with the previous year. Operating result
thus amounted to the highest ever for a quarter and was SEK
240.3 (209.4) million, an increase of 15 %. The operating margin
improved by 1.1 percentage points and amounted to 11.9 %.
BALANCE SHEET AND CASH FLOW
It feels good that our previously stated focus to prioritize costs,
earnings and cash flow had an effect already in the fourth quarter.
I am very happy and satisfied with our balance sheet and cash flow.
We are now entering a phase where we will focus on earnings and
positive cash flow instead of strong growth, investments in new
brands and inventory.
At the end of the quarter, we were negatively affected by the warm
weather and sales of winter products have been tough for both us
and our customers.
We enter this phase with an equity of SEK 3,770.7 million and an
equity ratio of 44.9 %. We have all the potential to further improve
this, but it is still a nice feeling and a great security.
FULL YEAR 2019
2019 was another year of growth. Net sales increased by 10 % (5 %
in local currencies) and amounted to SEK 6,903.5 million.
It is also pleasing that we for the fourth consecutive year propose
an increased dividend and at the same time increased sales and
strengthened the balance sheet.
It was the sixth year in a row of growth and during those years we
have grown by SEK 2.9 billion.
THE FUTURE
Operating result amounted to SEK 535.0 million and result for the
period amounted to SEK 370.1 million, both new all-time highs.
I feel confident and optimistic and we are strong in virtually all
areas and brands.
The year was characterized by great success for many of our opera-
tions. The only thing we are not satisfied with is the development
in Gifts & Home Furnishings where we also took a goodwill
write-down of Sagaform of SEK -11.4 million. Actions have taken
to improve the development.
The major investment we have made in club and teamwear brings
with it a new market for many of our brands, even if it is most
important for Craft.
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