NWG // 2020
Reporting of operating segments
New Wave Group divides its operations into the segments Corporate , Sports & Leisure and Gifts & Home Furnishings . The Group monitors the segments ’ and brands ’ sales as well as operating result . The operating segments are based on the Group ’ s operational management .
Corporate
In the Corporate segment , sales have been primarily affected by cancelled events , conferences and other corporate activities as well as the general problems
within the business , reducing the demand for promo products .
Net sales for the third quarter decreased by 1 % and amounted to SEK 710.0 ( 719.8 ) million . Sales increased in Other countries , related to increased sales for the trading business in Asia . In all other regions , sales decreased . Sales in the promo sales channel was on par with last year , while retail decreased . Operating result increased by SEK 27.3 million and amounted to SEK 72.1 ( 44.8 ) million . The improved result is attributable to cost savings .
Net sales for the first nine months of the year amounted to SEK 2,251.4 ( 2,254.9 ) million . Southern Europe and Other countries experienced growth , while all other regions decreased compared to the previous year . The slight increase in sales occurred in the promo sales channel , related to increased sales within the trading business . Retail decreased compared to the previous year . Operating result increased by SEK 14.4 million and amounted to SEK 209.1 ( 194.7 ) million . The improvement is attributable to cost savings .
As from 2020 , some trademarks have been reclassified from Corporate to Gifts & Home Furnishings . The comparative figures have been recalculated .
Sports & Leisure
Cancelled sport events have led to reduced replica sales and the sport retailer ’ s high inventory levels due to the mild winter have negatively affected the segment ’ s sales in combination with the current situation caused by COVID-19 .
Net sales during the period July- September decreased by 29 % to SEK 561.5 ( 785.9 ) million . Sales decreased in both sales channels . The segment had lower net sales in all regions . Most of the lower net sales was attributable to the US , while Sweden and Central Europe were just slightly lower than the previous year . The lower net sales have been compensated by cost savings , which has led to an operating result on par with the previous year amounting to SEK 89.9 ( 87.6 ) million .
Net sales for the period January- September decreased by 30 % and amounted to SEK 1,485.3 ( 2,115.7 ) million . Sales decreased in both sales channels . The segment had lower net sales in all regions , but mainly in the US . The Group ’ s American operations were , among other things , shut down for one and a half month during the second quarter . Operating result decreased with SEK 70.3 million and amounted to SEK 67.6 ( 137.9 ) million . The lower result is attributable to lower net sales , but has been positively affected by savings .
Gifts & Home Furnishings
The Gifts & Home Furnishings segment was negatively affected by COVID-19 mainly during the second quarter . A recovery has occurred since then , although net sales
are still negatively affected . All parts of the business have improved during the third quarter and the segment has had growth in both net sales and operating result .
Net sales for the third quarter increased by 11 % to SEK 198.7 ( 179.8 ) million . The higher net sales are mainly related to Sweden . Sales increased in both sales channels . Operating result improved by SEK 17.7 million compared to the previous year and amounted to SEK 14.3 ( -3.4 ) million , which was related to higher net sales as well as savings .
Net sales for the period January- September decreased by 4 % to SEK 488.8 ( 508.7 ) million . Sales decreased in both sales channels . Operating result improved by SEK 23.6 million compared to the previous year and amounted to SEK -14.4 ( -38.0 ) million , which was attributable to savings .
As from 2020 , some trademarks have been reclassified from Corporate to Gifts & Home Furnishings . The comparative figures have been recalculated .
10 // Q3