Yet another positive dividend surprise from one of our dividend picks today!
This morning, Swedish retailer Björn Borg reported FY 2015 sales of SEK 574m, an increase of 7% y-o-y. Operating profit amounted to SEK 59m. We are especially happy about the Board’s proposal to increase the dividend to SEK 2 per share (up from SEK 1.50 last year). At current share price levels, this implies a dividend yield of 6.3%. Following Dedicare and Unlimited Travel Group, Björn Borg was the third major positive dividend surprise. Don’t miss out on our top Swedish dividend cases and get the report today!
Björn Borg’s CEO Henrik Bunge comments in the report: “A year of positive development according to plan is now behind us. Adjusted for one-off items, sales and profit both increased by 12% in 2015. Despite a temporary decrease in Q4, the gross margin remained steady for the full-year at over 52%. Growth was mainly driven by increases in our own retail segment, with the e-com rising by 73%. Our own retail and e-commerce sales now represent just over 20% of Group sales. For the first time in a long time the retail segment also generated a positive result.
In our business plan, Northern Star, which was launched 15 months ago, we spotlight three focus areas: sports apparel, our own e-commerce and a stronger geographical presence in Northern Europe. In Q4 we made significant progress in all three. We launched a totally new sports apparel collection for introduction in August 2016 and a new store design. We have also created a new product group for launch in August 2016, Performance Underwear, where we have combined our world-leading expertise in producing underwear with functionality from the sports world. In addition, we have taken steps to build more of our own presence in the geographical focus area.
Total brand sales increased slightly in 2015 (+1%). Growth was driven by solid brand sales in Sweden, Norway and
Finland, while the planned termination of distribution agreements outside our geographical focus and negative trends in Belgium, Denmark and England slowed total brand sales.
Inventory has increased according to plan to ensure that merchandise doesn’t run out in our own retail channels. A large percentage of our inventory consists of underwear that isn’t seasonally dependent, which is why we feel it is wise to stock this product category so that we can always meet customer demand.
In summing up 2015 we can report that Björn Borg improved all the key indicators in the business plan: retail sales, employee engagement, operating profit and revenue.
A strong team of determined, passionate and engaged individuals, together with a disciplined approach to our business plan, was the key to our positive results in 2015. The aim for 2016 is to continue to improve all our key indicators with higher retail sales, stronger engagement, better operating profit and higher net sales than we delivered in the year just ended.”
For those of you who haven’t read our dividend report yet, you can find it here!