Amer Sports posts modest sales increase in second quarter
Amer Sports is going through a complex phase. In the last quarter, closed at the end of June, sales for the Finnish sport apparel and equipment group, owner of Arc'Teryx, Wilson and Salomon, rose by 1% compared to the same period last year (+2% before exchange rate adjustments), reaching €487 million.
"In the second quarter, consumer demand for our brands remained buoyant, and we recorded double-digit growth in our priority and strategic sectors, such as apparel, our directly owned monobrand stores, e-tail and the Chinese market," said Heikki Takala, the CEO of Amer Sports. “While the group's sell-through on the greater part of the US market has been satisfactory, our sales in this channel have however slumped, since we have been dealing with fewer physical stores after some of our clients went bankrupt in 2016," he added.
Amer Sports said it has opened a number of new stores and invested significantly in its customer data base, in e-commerce and within its own store network, in order to develop fully its omni-channel model. The organisation is fully deployed both in Europe and the USA.
Overall however, the group's margins have been eroded. The group announced net losses for €24 million, compared to losses for less than €15 million a year ago. In the last six months, Amer Sports’ sales were worth €1.149 billion, compared to €1.112 billion last year. In 2016, the group's net income in the first six months was €8.5 million, while in the same period this year the group posted a loss of €4.5 million.
For the whole of 2017, the senior management of Amer Sports forecast sales to grow, and is planning to achieve an EBITDA, net of exceptional events, equal to that of 2016, worth nearly €222 million.
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