Wave Group’s Sports & Leisure segment, which includes Cutter & Buck and Craft and Seger, saw its revenues decrease 13% for the fourth quarter, to SEK (Sweden Kronor) 344 million ($47.5 mm) but EBITDA increased 8.5% to SEK 31.9 ($4.4 million). Craft sales are still increasing compared to last year, driven mainly by the retail sales channel.
The weak American market had a negative effect on Cutter & Buck sales. However, the Swedish company said the market has recovered somewhat during the quarter. The profit increase for the segment is related to improved gross margins, mainly in the Americas.
In the full year, sales in the Sports & Leisure segment decreased 8% to SEK 1,574 ($217.4 mm). EBITDA was down 23.8% to SEK 122.1 ($16.9 mm). Turnover and sales for Craft continued positive trend. Cutter & Bucks were down for the year and also its profitability was affected by restructuring costs of SEK 7.1 ($980,000) due to changes in the division for direct sales to end customers. The profit decrease for the group is mainly related to lower sales.
