Norwegian fashion retailer Moods of Norway continued to expand for the 10th year in a row last year, but none of its founders took out any dividends, reports newspaper Dagens Næringsliv (DN). That’s because profits fell more than 60 percent despite a 3.3 percent rise in revenues.
DN reported that the retailer known for its tractor logo and cheerful, teasing portrayals of Norwegian life logged operating revenues of NOK 343.9 million last year, up from NOK 332.8 million the year before. Operating profits plummeted 66.7 percent, though, from NOK 51.4 million to NOK 17.1 million, while pre-tax profits fell by more than half, from NOK 50 million to NOK 19.4 million.
“Times are tough in our branch,” managing director Nils Are Karstad told DN. “We continued to stress online sales last year and also boosted our work towards building up a platform for international growth.” Moods handles most of its distribution itself, through the online sales and its own chain of retail outlets, which now features three stores in the US. That has added to the company’s costs.
The company has won awards, however, and according to a report by Norwegian retail trade association Virke, Moods of Norway is the clothing store in Norway that has grown the most, beaten only by Volt.