Lafuma has had a difficult quarter following the acquisition of Oxbow with a slow market at retail and a “notable” drop in sales of camping furniture, one of the companys mainstays. Including sales contributed by the new Oxbow business, Lafuma revenues increased only 1.9% to 129.7 million ($167.3 million) for the first nine months of 2005, up 1.9% from 127.3 million ($154.7 million) last year. On an organic basis the company reported a 3.9% decline in sales.
During the third quarter, Lafuma sales declined 7.2% to 42.4 million ($53.5 mm) compared to 45.7 million ($55.1 mm) last year. Management is estimating that the company will have roughly 200 million in sales this year, including the Oxbow business. This would represent about a 10% increase compared to 179.9 million last year. The company also stated that full year operating earnings will likely stagnate due to the sales slow-down, while net earnings will increase from the accretive nature of the Ober and Oxbow integrations.
Lafuma now owns over 98% of all Oxbow shares and intends to implement a mandatory tender offer for those outstanding. The company will also move forward with the formation of a new “Board Sports” category.