Amer Sports: Q2 sales in local currencies up 2 percent

Amer Sports’ net sales in April-June quarter were 483 million euros (565.6 million dollars) compared to 495.8 million euros (580.7 million dollars). In local currencies, the company said, net sales increased by 2 percent. Gross margin for the quarter was 44.1 percent and EBIT excluding IAC was negative 25.5 million euros (29.8 million dollars) against negative 22.8 million euros (26.7 million dollars) last year.

Commenting on the company’s performance, Heikki Takala, President and CEO of the company said in a statement: Q2 is our smallest quarter, during which we prepare for the significantly bigger H2 and we spend Opex and build inventory against confirmed pre-orders and expected demand. For H2 2018, our initiative pipeline is robust, and we expect strong growth in Arc'teryx, winter sports equipment, sports instruments, and fitness, which is boosted by the largest ever customer deal we just won for two years.”

Amer Sports’ H1 net sales decline 5 percent

Amer Sports’ net sales in January-June 2018 were 1,106.8 million euros (1,296 million dollars), down 5 percent. However, net sales increased by 2 percent in local currencies.

Gross margin was 45.6 percent compared to 44.4 percent, driven by improvement in channel mix and higher share of full-price sales. EBIT excluding IAC was 14.9 million euros (17.4 million dollars) compared to 12.7 million euros (14.8 million dollars).

Segment performance during Q2

In April-June, outdoor net sales were 244.1 million euros (285.8 million dollars), an increase of 4 percent in local currencies. Apparel category’s 10 percent growth, Amer said, was driven by Arc’teryx, however, in footwear, sales declined by 2 percent due to the continued consolidation of the global distribution footprint with focus on reducing promotional sales.

The company added that cycling continued to be adversely impacted by lower OEM orders and low demand in wholesale channel, and sales declined by 10 percent. In sports instruments, sales increased by 23 percent. Winter sports equipment pre-orders for the coming season increased by 10 percent compared to the previous year. Strong growth in Asia Pacific, Amer said, continued driven by China and US growth accelerated to double digits.

In April to June period, Ball Sports’ net sales were 159 million euros compared to 169.8 million euros (198.8 million dollars). In local currencies, net sales were at previous year’s level.

Amer Sports completes acquisition of Peak Performance

In April, Amer Sports Corporation announced the acquisition of all the shares and related businesses of Peak Performance AB from the Danish fashion company IC Group. The acquisition was completed on June 29.

“In Q2, we closed the acquisition of Peak Performance, which will further contribute to our growth and profit as of H2, and accelerate the company transformation towards areas of faster growth, higher profitability, and better asset efficiency,” added Takala.

In conjunction with the acquisition of Peak Performance, Amer Sports established a new apparel category structure with a dedicated leadership to enable faster growth and scale & synergy across the apparel brands Arc’teryx, Salomon, and Peak Performance. Jon Hoerauf, general manager Arc’teryx, was appointed President Amer Sports Apparel Category, and member of Amer Sports executive board.

Picture:Arc’teryx website