Hanna Öberg has over two million followers on Instagram and runs the company Oberg Fitness. According to the recent annual report, net sales amounted to 20.7 million Swedish krona, a decrease from the record year of 23 million krona. At the same time, operating profit more than halved from 7.0 million krona to 3.4 million krona.
The most dramatic change, however, is the closure of the British subsidiary Ownufit. The company was launched in 2022 to sell own-designed training clothes online. As recently as spring 2023 Ehandel.se reported that the e-commerce business was exceeding expectations and that the goal was for clothing sales to account for a similar share of the company's revenue as the training app within a couple of years.
Lack of Profitability
Instead, the clothing venture is now being shut down and a write-down of 1.5 million krona on receivables in the subsidiary. Alexander Nordström is CEO of Oberg Fitness and comments on the decision in an email to the news site:
Despite several successful launches and strong customer engagement globally, we took the strategic decision to wind down the business. This is due to a lack of profitability and the need for continued investment, writes Alexander Nordström.
He adds that, like many other companies, they have felt the effects of the economic downturn and that the divided focus between two businesses has been challenging. Going forward, Oberg Fitness will exclusively focus on its training app Ownu.
It’s never fun to see declining figures, but we have a clear plan for how to turn the trend around, and we look forward. We have been profitable since the start and see great potential for growth in Sweden and Europe.