Reaching a new record for the quarter, the New Wave Group raised its total revenues by 6 percent to 1,257 million Swedish kronor (€132.5m-$148.2m) for the second quarter ended June 30, with growth of 8 percent in local currencies.
It was a particularly strong performance in view of the fact that the company had booked increases of 21 percent in kronor and 10 percent on a currency-neutral basis in the same quarter of 2014. Further progress is expected next year as Craft is getting ready to launch for the first time a line of teamwear for football, handball and floorball during the first quarter of 2017. Craft shoes will be added at the turn of the 2017/18 year.
However, most of the sales increase came from the Corporate Promo segment, which rose by 12 percent. Gifts & Home Furnishings generated a sales increase of 7 percent. Sales declined slightly in the Sport & Leisure segment to SEK 515 million (€54.3m-$60.7m), which includes Craft, Clique and many other brands, but delivered improved operating earnings before amortization (Ebitda) of SEK 24.0 million (€2.53m-$2.83m).
Geographically, the group's sales rose by 12 percent in Sweden, by 13 percent in the other Nordic countries, by 9 percent in Central Europe and by 13 percent in Southern Europe, They fell by 4 percent in North America. Sport & Leisure operations followed a similar pattern.
The group's operating earnings more than doubled to SEK 100.2 million (€10.6m-$11.8m), thanks in part of a higher gross margin, which went up by 0.8 percentage points to 45.5 percent. At 8.0 percent of sales, they were at the highest level since 2008, but the group's chief executive, Torsten Jansson, said that the margin will be higher in the future, despite heavy investments in product development, sales and marketing.
The final result for the quarter was a net profit of SEK 67.0 million (€7.06m-$7.90m) compared with SEK 27.8 million in the year-ago period.