The once high-flying Norwegian clothing chain “Moods of Norway” has been suffering some wear and tear of late. A new survey by trade association Virke shows that it suffered the biggest downturn of all retailers in the local apparel trade last year, with revenues down 5.3 percent.
Newspaper Dagens Næringsliv (DN) reported that after posting profits of nearly NOK 100 million in 2011, Moods of Norway has logged losses for the last two years. “We’re in a tough market,” chief executive Jan Egil Flo told DN. “I think everyone is having a hard time, especially in the premium segment where unemployment (among its customers) is climbing.”
Flo was among the three founders of Moods in Norway, and he also blames the weaker Norwegian krone for part of the clothing chain’s poor results. Most of its apparel is produced abroad, making it more expensive in Norwegian kroner, adding to costs and cutting into profits. The stronger US dollar wiped out Moods of Norway’s dividend, Flo said.
The clothing chain known for its tractor logo, plaid suits for men and waffles has also gone through a restructuring, moving away from being a wholesaler and more of a retailer with its own portfolio of stores. Its large store in New York was shut down, with Moods opening more small stores in the domestic market like a new outlet in Jessheim north of Oslo.