NWG Annual Report 2019 - EN NWG Annual Report 2019 - EN | Page 27

NWG // SPORTS & LEISURE
from customers, the Group places orders
at the factory, which significantly limits
the obsolescence risk. The remaining
sales in the retail sector, so-called comple-
mentary sales, are mainly basic goods with
a limited fashion risk.
The bulk of the inventory relating to
the retail trade has less fashion sensitive
areas such as Craft's functional underwear
and club collections as well as Clique's
basic garments.
The capital tied up in inventories for
promo is higher but is a prerequisite for
success in the promo sales channel. A
company or association that, for example,
orders promowear is dependent on the
supplier being able to deliver a full size
sorting and the right colours. However,
the risk of obsolescence is low because a
larger part of the range is timeless basic
products that there is a need for season
after season. Many of the products are
common to both the promo and retail
channels, which offers risk diversification,
and means that catalogues can also be in
common.
In order to limit the currency risk
in the retail channel, approximately
50-75 % of the currency-exposed
purchasing costs are hedged. Within
the promo sales channel, adjustment
for changed purchasing prices is made
continuously as it is about immediate sales.
The currency risk can thus be limited.
Regarding the capital tied up in accounts
receivable, sales are made to selected
retailers and the credit losses are low.
However, there is a higher concentration
to a fewer number of retail customers
compared to the promo market. In 2019,
the confirmed credit losses in the operating
segment amounted to 0.09 (0.09) % of net
sales.
2019
Trademarks
Sköna Marie PAX
Termo Paris Glove
Sköna Marie is a classic Swedish brand
that makes high quality women's shoes
with top-grade comfort and function.
Sköna Marie uses the best raw mate-
rials and most shoe models are made
of natural materials such as leather,
cork and rubber. Recycled material is
also used to an increasing extent. The
shoes are sold through a nationwide
network of retailers in shoe and health
stores and e-commerce. All shoes from
Sköna Marie are free from PVC, Teflon,
hexavalent chromium, PTFE and other
fluorocarbons. The main competitors are
Ecco, Rieker and the shoe retailers´ own
brands.
Termo is one of our oldest brands as the
products have their roots since their
beginning in 1921. Termo has a complete
collection of underwear and functional
garments of knitted wear for different
professional groups, but is also used
extensively by hunters, adventurers and
athletes. The materials are developed and
produced in their own knitting factory in
Sweden and the garments are designed
and constructed in the company’s own
design and sewing department. Termo
has its largest sales in Europe, where for
many years it has been a leading supplier
of functional underwear to police and
military authorities.
For more than 90 years, PAX has been
working to produce high quality shoes
for children and is today one of Sweden's
leading shoe manufacturers. High
function, careful material selection
and well thought out design with tech-
nical solutions to work in all weather
has become PAX hallmark, simply a
good start. Recycled material is increa-
singly used. The shoes are sold through
a nationwide network of retailers in
footwear, sports and e-commerce. All PAX
shoes are free of PVC, Teflon, hexavalent
chromium, PTFE and other fluoro-
carbons. The main competitors are the
shoe retailers' own brands and Ecco,
Kavat and Viking.
Paris Glove was founded in 1945 and
has a long experience of producing
fashionable gloves and winter access-
ories. Paris Glove grew from a small
domestic manufacturing company in
the fashion capital of Canada, Montreal,
and became a leading company with
global sourcing. The company continues
to drive new Canadian concepts and
collections in order to stay at the
forefront of winter accessory trends.
Products made from leather, suede and
shearling as well as knitted mittens
make up the annual offering that
customers enjoy during the cold winter
months in North America.
ANNUAL REPORT // 027