Underwear brand Björn Borg has recorded a loss of earnings for the fourth quarter ending 31 December.
The company said that losses reached SEK11m (£1m), as sales fell 28% to SEK100.2m.
Profit margins rose to 52.5% from 51.6% in the same period of 2012.
Over the full year, net profit reached SEK13.9m from SEK47.2m in the previous year. Net sales declined by 9% to SEK499.2m from SEK551.4m.
Operating profit fell to SEK21.2m from SEK69.8m. The company said that operating profit was hit with about SEK12m from delayed shipments, SEK14m relating to the Chinese business, and SEK26m from the resigning CEO.
“As reported earlier this year, 2013 was marked by continued weak retail demand in many of Björn Borg’s markets, particularly the Netherlands,” said acting CEO Henrik Fischer.
“Together with the major shipment delays at the end of the year and disposal costs for the Chinese operations, this contributed to the significant decline in sales and earnings we are reporting for the full year and the fourth quarter. Our operations in England and Finland are developing positively, as are our own retail and e-commerce operations.”