The Exel groups sport division, one of the primary drivers behind the Nordic walking movement in Europe and the U.S., reported a steady first half performance with sales climbing 2.2% to 19.0 million compared to 18.6 million last year. However, investments in the future growth of the Nordic Walking market seem to be eating into the bottom line. While these investments cut operating profit by 41.2% to 2.1 million compared to 3.6 million last year, the long term benefits will hopefully pay dividends.
For the second quarter, Exels sport group sales remained relatively flat at 9.7 million, while operating profit declined 34.6% to 1.7 million.
The company stated that the Nordic Walking market continues to grow in central Europe, especially in German speaking countries, and demand is expected to rise further in the fall. The Netherlands and Denmark are the strongest of the developing markets, and Poland is expected to be opened this fall.
Exel continues to invest in its new U.S subsidiary, Exel USA, and sees evidence of the initiative helping to spread the sport. The company also stated that Nordic Walking is one of the few areas in sporting goods that has seen substantial growth, and Exels market share remains strong.
