NET SALES AND OPERATING RESULT
The first quarter gave a good start to the year. Since Easter this year
occurred in March instead of April, we had a negative calendar
effect. January and February had a growth of 5 %, while March
decreased 5 %. This, combined with the fact that April sales have
started well, makes the picture of this calendar effect clear. I also
believe that the cold spring has meant that sales for the season are
late – especially within retail. Despite this, we managed to increase
net sales by 1 % (3 % in local currency), which feels psychologi-
cally important as it is the 15th quarter in a row we deliver growth.
OUR NEW PRODUCTS
The development was strong in the promo sales channel but
weaker in retail. The promo sales channel increased by 7 % which
feels very good. Unfortunately, the retail sales channel decreased
by 7 % which we are not satisfied with. We believe that it has to
do with above items – calendar effect and a late spring – but also
that we have had a negative currency effect when converting sales
into SEK. Regardless of the reasons, we will take extra actions in
this sales channel.
Our new products have been received well. Craft Teamwear is
strong and our expectations are high for the coming 3-5 years.
Craft running shoes sold out almost immediately – although it
should be noted that our purchasing volumes were low - but it is
still pleasing with such a debut and that consumers have shown
that they have a high level of confidence in the brand.
I continue to be positive for 2018 and the coming years. Our base
orders for the autumn within Craft shows good development and
our new product range should increase our growth from existing
level. Even our impressive marketing and increased sales forces
should start to give effect during the second half of the year.
Our investments in marketing and sales increased our costs.
External costs increased by SEK 28.6 million and personnel costs
increased by SEK 18.3 million, in total SEK 46.9 million. Despite
the negative calendar effect and the investments in marketing, we
managed to deliver an operating result that amounted to SEK 18.6
million. This was thanks to a strong gross profit margin which
amounted to 46.8 (45.2) %. This is a start that we are pleased with.
Thank you for the first quarter!
THE BALANCE SHEET
The balance sheet continues to strengthen and the equity ratio
amounted to 51.3 (49.4) %. Net debt to equity ratio decreased to
54.5 (60.6) %. It feels good to have a strong balance sheet that will
help us in our continued work for sales growth but also in case of
Torsten Jansson, CEO