It was a challenging year, even more than we/I anticipated. The very strong market during Covid and effects from a low growth in many countries and other difficulties arising from the political and macroeconomic situation in the world affected our business. In earlier periods of low growth and recessions usually the outdoor industry and Fenix Outdoor especially has gained from people buying more goods doing local outdoor activities and travelling less, but in 2024 the situation was different. People travelled more than ever and were also, to some extent, already equipped with goods and equipment purchased during the covid.
The quarters
2024 started very much as we expected it. We entered Q1 with a lower order book compared to the year before. This was mainly due to the inventory situation in the spring of 2023, which caused high insecurity among our retailers. The lower sales were also an effect from the divestment of Primus in 2023. The second quarter was more challenging than assumed. The retail market still faced a situation with higher-than-normal inventory, as well as a volatile trading because of the weather. There were also indications that several retailers were facing some liquidity/financial problems, limiting their ability to serve the market. The period was affected by a price pressure in the market.
The third quarter continued as the second quarter. The retail market continued to be driven by price pressure and warm weather. The supply chain was affected negatively by the crisis in the middle east. This were, not only creating delays to Europe, the following lack of containers also hurt deliveries to the US. The were some lights. China, where Fenix Outdoor operates a JV, performed very well not only in the Q3, but over the full year.
The 4th quarter started promising, but a delay in winter weather meant it slowed down before improving again towards the latter part of the quarter. We did run into shortage of some winter merchandise due to more conservative purchasing because of the large inventory the year before.
Other observations from the year passed
A trend globally, valid for all periods, was that the digital sales channels in general underperformed compared to brick and mortar. Despite a total loss of sales vs 2023 of 7.3%. The brickand-mortar business stand-alone showed was stable compared to the year before, that including the close of some nonprofitable addresses. So, on a like for like basis a growth was achieved. The cost saving actions decided in 2023 took some effect already in 2024 lowering the total OPEX by 2%. The downsizing on inventory to a more relevant level and the cut in OPEX drove the cash flow of the year in a very positive direction.
During the year the group made some investments to strengthen its operations. In June Fenix Outdoor entered a partnership with the German outdoor brand Maloja to operate apparel production at their existing production facility, Viomoda, in Plovdiv, Bulgaria. This is the first step toward establishing apparel production in Europe at Fenix Outdoor, following our earlier announce change in production strategy. In March 2024 Fenix Outdoor acquired 30% of its local Fjällräven Brand retail partner, Arctic Fox s.r.o. Artic Fox runs six Fjällräven Stores and online business in the Czech Republic and Slovakia. Fenix Outdoor has an option to increase its ownership over time.
In March 2025 another important and strategic important investment was made. Fenix Outdoor acquired 65% of the shares in Devold of Norway AS, a pioneer in wool clothing for outdoor activities and protective workwear. Following completion of the transaction, Devold will become Fenix Outdoor’s number one wool brand. Fenix Outdoor also has an option to increase its ownership over time.
Quoting Martin Axelhed Executive Vice President of Fenix Outdoor and responsible for the Brands segment of the group
We have searched extensively for a premium wool brand to complement our portfolio and have now found the right partner. Honoring Devold’s heritage and high-quality standards, we are eager to introduce outdoor enthusiasts and adventurers to Devold’s high-performance garments and build a leading global wool brand.
2025 and forward – possibilities, but also remained risks
We are still facing a challenging market in 2025. In terms of orderbooks for 2025 we do see an improvement for both fall and winter. There are still signs of retailers being cautious of taking risks in inventory. They are counting more on reorders from the brands. This means there is an increase of risk in our business, especially in purchasing, as we must take a larger risk to enable us to capitalize more in reordering. The supply chain as well as the political environment is also factors playing in. We have improved our inventory situations overall, even though we have not achieved the optimal level everywhere in the group. We are now focusing more on optimizing the levels which might mean increasing inventory in some parts of the operations to optimize sales. We will also work hard to integrate Devold in our Brand and distribution network. We are still facing a cost challenge going forward, both internally as well as externally. Internally we are facing extra costs from implementing the new ERP system, while keeping old systems running, as well as higher than normal costs running our logistics until we have fully implemented our warehouse operation in Ludwigslust. We are also contemplating increasing our marketing spend for the next 18 months given the positive experience we had last fall with the two larger campaigns we did in Germany and in the US (New York). Externally we are facing a volatile supply chain, both in speed and cost, as well as political challenges from potential trade wars, need to note tough that we have a limited exposure to the US vs China part of it.
Thanks for all support
I finalize by repeating my message from the Q4 report and give a big Thanks to our management, all employees, board, shareholders and not the least customers for their efforts and loyalty in helping us.
All the best,
Martin Nordin
Chairman of the Board
Dear sustainability friends,
2024 was a challenging yet insightful year. Supply chain disruptions, shifting weather patterns, and inventory challenges—both internally and at our retailers—presented hurdles throughout the year. However, we are also seeing positive developments, particularly in gaining better control of our inventory situation.
Some challenges, like shifting seasons and unpredictable weather, are beyond our control, yet they have a significant commercial impact on us. While we cannot influence these forces directly, I am proud that we remain steadfast in our commitment to sustainability, continuing to push for meaningful change through responsible business practices.
We are constantly striving to professionalize our CSR/ESG efforts—reducing our environmental impact, ensuring fair labor practices, promoting animal welfare, and integrating sustainability into every aspect of our business. Our guiding document, The Fenix Way, outlines our values and commitments, helping us stay on course by following our Fenix Managerial Compass, which is built on four cardinal directions: Nature, Economy, Society, and Wellbeing. In line with these principles, we continue to uphold our commitment to the UN Global Compact and the UN Climate Action initiative. These frameworks shape our sustainability strategy and ensure we hold ourselves accountable to the highest standards of responsible business.
As I have stated before, we welcome the increasing regulatory focus on ESG transparency. Last year, we proactively adapted our reporting framework to align with upcoming EU legislation. This dedication was recognized in 2024 when we won the ESG Transparency Award for our 2023 CSR Report—an achievement that makes me immensely proud. We remain committed to setting an even higher standard in transparent reporting.
Furthering this transparency agenda, Fjällräven launched a more accessible, condensed version of our CSR report to provide a clear and engaging overview of our progress and challenges. This 20-page report highlights key efforts in material innovation, responsible chemical management, animal welfare, social responsibility, and climate action.
Beyond our own operations, we take responsibility for ensuring ethical practices across our supply chain. We continue working closely with the Fair Labor Association, aligning with its principles to uphold fair labor standards and improve working conditions for those involved in our production processes.
Before closing, I want to highlight a few initiatives that truly stand out. Circularity remains a challenging but essential area for us to address. Across the group, we have been testing various models to create real impact. Within Frilufts Retail, we have seen great success with circular business models—especially at Globetrotter and Naturkompaniet—where second-hand sales, care-and-repair programs, and rental services have gained significant traction.
Within our brands, I want to highlight two key achievements from Fjällräven. First, the brand has once again been named the most sought-after on the Scandinavian second-hand marketplace, Tradera. Not only is Fjällräven the most searched-for brand across all categories (not just sports and outdoors), but it also retains one of the highest resale values—reinforcing the idea that investing in a Fjällräven product is both a sustainable and a financially wise choice. Additionally, Fjällräven launched Pre-Loved in North America, a peer-to-peer marketplace where our community can buy and sell used Fjällräven items. The early results are promising, and we are gaining valuable insights into how we can further promote circularity.
Looking ahead, we recognize that sustainability and commercial success are deeply interconnected. The achievements of the past year reaffirm that, even in times of uncertainty, our dedication to responsible business practices strengthens our long-term resilience. I want to extend my sincere gratitude to our employees, partners, and customers for their continued support, and I look forward to another year of progress and shared success.
Martin Nordin
Chairman of the Board
