COMMENTS
SUMMARY OF THE QUARTER APRIL - JUNE
The Group increased its net sales by 11% (6% in local currencies) during the second quarter. Growth was
achieved in all segments, but mainly in Sports & Leisure, which increased by 17%. The segment experienced
growth in all regions, but increased primarily in Sweden, Central Europe and the USA. Corporate increased
by 7% and the improvement occurred in the USA, Central and Southern Europe and Other countries, while
Sweden and other Nordic countries decreased slightly. Gifts & Home Furnishings increased by 5% and growth
was mainly in Sweden.
The promo sales channel increased by 7%. The improvement occurred in all segments. The retail sales channel
increased by 18%, which was attributable to Sports & Leisure and Gifts & Home Furnishings.
The gross profit margin was slightly lower than last year and
amounted to 46.5 (47.2)%.
Cash flow from operating activities amounted to SEK 9.0 (124.6)
million. The lower cash flow is primarily a result of higher merch-
andise purchases and the payment thereof. Inventories increased
by SEK 478.9 million and amounted to SEK 3,467.4 (2,988.5)
million, of which the exchange rate change when translated to SEK
has increased the value by SEK 47.4 million. The increase is mainly
attributable to new product assortments and inventory build-up in
North America.
The Group's expenses increased compared with the previous year.
External costs have mainly increased due to more marketing acti-
vities and improvement measures in our distribution centers.
Volume related costs have also contributed to the increase. The
increase in personnel costs is related to more employees in sales,
warehousing and customer service.
Operating result decreased by SEK 17.7 million compared to the
previous year and amounted to SEK 119.6 (137.3) million and result
for the period amounted to SEK 83.7 (106.8) million.
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