Craft 's partnerships within teamwear continue.
The brand's latest contract includes the football
team IFK Göteborg and a sponsorship with pro
runner Tommy Rivs.
JANUARY - DECEMBER
NET SALES
Net sales amounted to SEK 6,903.5 million, which was 10%
higher than the previous year (SEK 6,290.6 million). Exchange
rate effects had a positive impact on sales of SEK 275.9 million,
corresponding to 5%.
with IFRS 16 has reduced external costs by SEK 135.6 million.
Excluding IFRS 16, costs have increased, which is mainly related to
higher sales and marketing initiatives such as increased inventory
capacity, improved service level and marketing. The higher net
sales have also increased volume-related costs. Personnel costs
increased by SEK 96.9 million and amounted to SEK -1,159.9
(-1,063.0) million, which is related to more employees in primarily
warehousing and sales, but also in areas such as marketing, product
development and customer service. Exchange rate changes have
increased the above costs by SEK 100.3 million.
Net sales in Sweden increased by 5% and the improvement was
achieved in the retail sales channel. The US increased by 12% and
the increase occurred in both channels. The exchange rate change
when translated to SEK had a positive impact on sales and sales in
local currency increased by 3%. The Nordic countries excluding
Sweden increased by 7% and both sales channels increased. Net
sales in Central Europe improved by 9%, which is related to both
promo and retail. Southern Europe increased by 13% which is
related to the promo sales channel. Both European regions were
positively affected by exchange rate changes when translated
to SEK and sales in local currencies improved by 6% and 10%
respectively. Other countries increased by 14% which is related
to operations in Asia and Canada and the promo sales channel.
Amortizations, depreciations and write-downs were higher
compared to last year and amounted to SEK -233.1 (-77.9) million.
The increase is primarily a result of IFRS 16, which affected depre-
ciations by SEK -126.4 million. The higher depreciations are also
related to new investments in warehouses and a write-down of
goodwill in the Gifts & Home Furnishings segment, which
amounted to SEK -11.4 million.
GROSS PROFIT
OPERATING RESULT
The gross profit margin was 46.4 (46.6)%. Corporate as well as
Sports & Leisure were on the same level, while Gifts & Home
Furnishings had a slightly lower margin than last year.
Operating result improved by SEK 52.8 million and amounted to
SEK 535.0 (482.8) million. The operating margin is at the same
level as the previous year and amounted to 7.7 (7.7)%.
OTHER OPERATING INCOME AND OTHER
OPERATING EXPENSES
NET FINANCIAL ITEMS AND TAXES
Net financial items amounted to SEK -68.2 (-40.9) million.
Accounting in accordance with IFRS 16 affected financial
expenses by SEK -20.0 million. The Group has higher interest
expenses due to a higher net debt.
Other operating income increased by SEK 3.1 million to SEK 77.9
(74.8) million. Other operating income is attributable to operating
currency gains and other remunerations and should be compared
to the result row Other operating expenses, where primarily
currency losses are reported. Both years include a positive result
from business combinations, which amounted to SEK 11.4 (8.4)
million. Other operating expenses decreased by SEK 5.2 million
and amounted to SEK -39.6 (-44.8) million. The net of the above
items amounted to SEK 38.3 (30.0) million.
The tax expense for the period was SEK -96.7 (-81.8) million and
the effective tax rate was 20.7 (18.5)%. The increased tax rate is
mainly due to the fact that last year includes a positive change in
deferred tax.
RESULT FOR THE PERIOD
COSTS AND DEPRECIATION
Result for the period amounted to SEK 370.1 (360.0) million and
earnings per share amounted to SEK 5.66 (5.48).
External expenses decreased by SEK 23.7 million and amounted
to SEK -1,312.7 (-1,336.4) million. Accounting in accordance
9