New Wave Group, the Swedish-based owner of Ahead, Auclair, Craft and Cutter & Buck, said it is largely affected by the spread of the coronavirus. The demand for the group’s products and services is expected to be significantly reduced for all operating segments during the remainder of the first calendar quarter of 2020.
The demand thereafter is expected to be affected in particular during the second calendar quarter, but it is currently not possible to give any forecasts for periods beyond that.
In the Corporate segment, sales are expected to decrease primarily due to canceled events, conferences and corporate activities as well as due to general problems in the economy, resulting in that the demand for promotional products will be significantly reduced.
Sales are expected to decrease also in the Sports & Leisure segment, however not to the same extent as in the Corporate segment. Canceled sporting events are expected to lead to decreased replica sales, the sports retail’s high stock volumes resulting from the warm winter are expected to affect the segment’s sales negatively in combination with the current situation caused by the virus outbreak, which is expected to result in fewer visits to and sales in physical sports retail stores. The risk of increased bad debt expenses is considered significant.
In the Gifts & Home Furnishings segment, the part of the business attributable to the destination Kosta, such as Kosta Boda Art Hotel, Kosta Lodge as well as restaurants and stores, is expected to see significantly reduced sales and an impaired result for the remainder of the year. Remaining businesses in the segment are also expected to decrease sales, however not to the same extent.
The group is currently taking a number of actions to reduce costs and minimize the effects of the virus outbreak.
New Wave Group offers a wide range of sportswear and casual clothes.
Photo courtesy New Wave Group/Craft