Helly Hansen reported revenues in 2016 grew 6.4 percent to NOK 2.66 billion ($318 mm) despite reducing the product line by 25 percent. Organic revenue growth came to 4 percent.

Operational EBITDA jumped 23.6 percent to a record NOK 204 million ($24.5 mm) while gross margin expanded by +1.5 percent points to 42.9 percent.

In its statement, Helly Hansen said all countries moved to profitability in 2016, including the USA for the first time. Helly Hansen in a separate release announced that it had appointed Waypoint Outdoor as its exclusive U.S. nationwide master sales representative for both the sportswear and work-wear wholesale businesses.

The company said it continued its transformation in 2016 with a focus on fewer categories and products; a deeper investment in brand development and innovation; building stronger in-house capability across sourcing, logistics, digital, e-commerce and retail; while also releasing cash and capital to reduce interest bearing debt. The moves included ramping up its marketing investment to an all-time high combined with increased investment in R&D and design with a goal of strengthening its position in technical performance wear for mountain and sea activities. Sourcing was also brought in-house, moving away from its historical sourcing agent model

The net loss was reduced to NOK 138 million ($16.5 mm) from NOK 302 million in 2015. Special items excluded from operational EBITDA include the sale of HH Japan brand rights to long term partner Goldwin that led to an EBITDA after-tax gain of NOK 206 million ($25 mm).

Helly Hansen said its 2017 outlook “looks promising” with strong order book growth versus year ago, led by strength in Europe, especially the Nordic region.

Paul Stoneham, CEO of Helly Hansen, said: “We are building a more consumer centric, focused and financially strong company behind the new growth strategy deployed 2 years ago. The team delivered another record year combined with substantial change including a full brand re-launch, a 25 percent product line reduction, investment in R&D and design, launching a new e-Commerce platform, bringing product sourcing in-house, opening a new North American distribution center and concluding partnership deals across Japan, Russia and Australia. The 2017 outlook is positive with accelerated growth based on a strong order book.”

Photo courtesy Helly Hansen