Swedish apparel retailer Björn Borg AB has delivered solid sales growth in fiscal 2022. However, profits fell significantly due to higher costs. This emerges from an annual report that the company published on Thursday.
Not least thanks to strong growth in Germany, sales reached 835.2 million Swedish crowns (75.9 million euros) in 2022, exceeding the previous year’s level by 8.7 percent. Adjusted for exchange rate changes, revenues increased by 4.7 percent.
Negative currency effects, higher marketing expenses, increased rental and selling expenses and the financial consequences of a new incentive program weighed on the result. Operating profit fell by 30.0 percent to 72.9 million Swedish crowns.
However, adjusted for special and currency effects, the operating result rose by 15.4 percent to 120.1 million Swedish crowns, according to the company. Reported net profit amounted to 50.9 million Swedish kronor (4.6 million euros) and was thus 40.9 percent below the previous year’s level.