Fenix Outdoor International AG reported that North America accounted for 85 percent of its brand sales growth in the nine months ended Sept. 30.
The Swedish company said its North American brand sales rose by SEK9.4 million ($1 mm), or 47.7 percent, to SEK23.7 million ($3 mm) compared with the same period in 2014. That accounted for 85 percent of the SEK11 million increase in overall brand sales, which grew 8.1 percent to SEK146.9 million ($17 mm) during the first three quarters of the year.
Fenix Outdoor's Primus stove and Brunton instrument brands have been available in the United States for years, but the bulk of the company's growth over the last three years has come from Fjällräven, which offers apparel, packs and sleeping bags. The company has also begun distributing its German footwear brand Hanwag in North America.
Fenix Outdoor reported total net sales jumped 78.5 to SEK136.6 million in the third quarter ended Sept. 30, 2014, due primarily to a new joint venture that resulted in its retail revenues jumping just over four-fold to SEK75.8 million ($9 mm). The increase reflects results at Frilufts AB, a joint venture formed with the Germany adventure travel retailer Globetrotter Gmbh in December 2014. Fenix Outdoor folded its two retail chains – Naturkompaniet of Germany and Partioaitta of Findland – into Frilufts in exchange for 60 percent of the joint venture.
Fenix Outdoor's consolidated operating income rose 21.4 percent to SEK27.2 million ($3 mm) compared with the third quarter of 2014, but operating margins plummeting 940 basis points to 19.9 percent. Profit before tax rose 5.5 percent to SEK25.1 million, while profit after tax dipped 1.7 percent to SEK17.7 million ($2 mm), or SEK1.31 per share, compared with SEK1.36 in the year earlier quarter.
