Amer Sports Q2 Loss Doubles

mike lewis

• August 06 2009
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Amer Sports, the Helsinki based sporting goods company whose brand profile including Salomon, announced a second quarter 2009 net loss of €23.2 million ($32 mm), more than double the loss of €11.4 million ($18 mm) for the same period a year ago. Net sales for the quarter were €284.7 million ($388 mm) versus €285.1 million ($456 mm) in 2008, which amounted to a 6% decrease in local currencies. Sales in its Winter Sports categories increased by 2%.

Here are some highlights from the release:

Roger Talermo, president and CEO, said, “”Market conditions in the sporting goods industry during the second quarter remained as difficult as during the start of the year. The US market continued to suffer more than the European market and in general, there is less demand for high-ticket items. This was evident in both our Fitness and Golf businesses that saw the largest sales decline within Amer Sports.

“Then again, the demand for low-ticket items has remained healthy. We managed to improve our strong growth rate during the second quarter in our Apparel and Footwear business. Our pre-orders in Winter Sports Equipment for the next season are at last year’s level thanks to market share gains in Europe.

The second quarter is not material for Winter Sports Equipment sales as all focus is on order intake for the next season. Its sales declined by 12% in local currencies in the review period. Pre-orders in Winter Sports Equipment for the next season are at last year’s level, with strength in cross-country skiing and protectives.

Regionally, North America continues to underperform while most key European markets show healthy progress in orders. The operating expenses continue to track down as planned.