Amer Sports reported that net sales for the third quarter declined 5.2% to €410.6 million ($587 mm) from €433.2 million ($653 mm) in the year-ago quarter. Currency-neutral sales declined 6% for the period.
Net sales in the Wilson Ball Sales group declined 6.5% to €103.4 million ($148 mm) from €110.6 million ($167 mm) in the year-ago period, or a 9% decline in currency neutral terms. In home market U.S. dollar terms, sales fell 11.3%, with fairly even pain across all categories. Racquet Sport sales declined 11.7% in U.S. dollar terms to $75 million (€53 mm), Golf sales also declined 11.7% to $21 million (€15 mm) and Team Sports sales fell 10.6% to $51 million (€36 mm). Wilson group EBIT fell 65.5% in U.S. dollar terms to $3 million (€2.4 mm).
Net sales in the Precor Fitness division declined 18.5% in euro terms to €44.8 million ($64 mm) from €55.0 million ($83 mm), reflecting a 23% decrease in U.S. dollar terms and a 20% decrease in currency-neutral terms. Precor posted a EBIT loss of $2 million (€1.4 mm) compared to a EBIT profit of $4 million (€2.8 mm) in the year-ago period.
Net sales in the Winter and Outdoor group dipped 1.9% to €262.4 million ($375 mm) from €267.6 million ($403 mm), or a 2% decline in local currencies. The Winter Sports business declined 7.1% in euro terms, or 8% in local currencies, while the Apparel / Footwear business increased 6.2% in euro terms, or a 7% increase in local currencies. The Cycling business fell 8.5% in euro terms (down 10% in local currencies) and the Sports Instruments business was fairly flat for the period. EBIT for the Winter and Outdoor group declined 3.5% to €44.1 million ($63 mm).
Total Amer Sports gross margins declined 130 basis points to 41.7% of sales from 43.0% of sales in Q3 last year. Net income declined 12.5% in euro terms to €28.8 million ($41 million) from €32.9 million ($50 mm) in the 2008 third quarter.
Looking ahead, the company said that the market outlook for Amer Sports has not changed during the third quarter and the company's guidance remains unchanged. Amer Sports full-year 2009 EBIT will be below last year's level. The expected improvement for Winter Sports Equipment due to previously implemented cost-efficiency measures is more than offset by weakness in other Amer Sports businesses.
