Craft launches new Fuseknit collection.
JANUARY - SEPTEMBER
NET SALES
COSTS AND DEPRECIATION
Net sales amounted to SEK 4,347.2 million, which was 10 %
higher than last year (SEK 3,967.0 million). Exchange rates have
affected the turnover positively by SEK 96.9 million, which corre-
sponds to 3 %. Of the Group's sales channels, promo increased by
15 % and retail by 3 %.
External costs increased by SEK 121.7 million and amounted to
SEK -945.8 (-824.1) million. The increase is attributable to higher
sales and marketing activities but also improvements related
to our distribution centers. Personnel costs amounted to SEK
-765.0 million which is SEK 86.8 million higher than last year
(SEK -678.2 million). The increase is related to more employees,
primarily in sales, distribution centers and customer service.
Exchange rate fluctuations have increased costs by SEK
33.2 million.
Net sales in Sweden increased by 3 % and both sales channels
showed growth. USA increased by 3 %, which is related to the
promo sales channel. Other Nordic countries increased by
9 % and also in this region the improvement is related to the
promo sales channel. Sales in Central Europe increased by 11 %
(4 % in local currency) and the improvement occur in both sales
channels. Southern Europe increased by 12 % (5 % in local
currency), where the increase was attributable to the promo sales
channel. Other countries increased by 42 %, which was related to
Asia and Canada and the promo sales channel.
Depreciation and write-downs were higher compared to last
year and amounted to SEK -56.3 (-47.1) million. The increase is
primarily related to investments in new and existing buildings as
well as in IT.
OPERATING RESULT
GROSS PROFIT Operating result decreased by SEK 23.2 million and amounted to
SEK 273.4 (296.6) million. The operating margin amounted to
6.3 (7.5) %, where the somewhat lower margin is related to costs
in connection with our planned increase in marketing activities
together with improvements in our distribution centers.
OTHER OPERATING INCOME AND OTHER
OPERATING EXPENSES Net financial items improved by SEK 10.6 million compared
with last year and amounted to SEK -28.2 (-38.8) million. The
improvement was related to lower interest costs.
The gross profit margin improved compared with last year and
amounted to 46.7 (46.3) %. It was mainly the segment Sports &
Leisure that increased its margin while Corporate Promo and Gifts
& Home Furnishings had a slightly lower margin. The Group has a
well-balanced stock and a good level of service.
NET FINANCIAL ITEMS AND TAXES
Other operating income increased by SEK 18.2 million to
SEK 46.5 (28.3) million. Other operating income is mainly attribu-
table to operating currency gains but also other remunerations and
should be compared to the result row "Other operating expenses"
where mainly operating currency losses are reported. Other
operating expenses increased by SEK 16.0 million and amounted to
SEK -35.1 (-19.1) million. The net total of above items amounted to
SEK 11.4 (9.2) million
Tax on profit for the period amounted to SEK -44.1 (-50.6) million.
RESULT FOR THE PERIOD
Result for the period amounted to SEK 201,1 (207,2) million and
earnings per share amounted to SEK 3.06 (3.14).
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