Amer Sports reported net sales for the third quarter increased 17 percent in local currency terms to €559.2 million ($792 mm). The growth was said to be particularly strong in Winter Sports Equipment, which grew 24 percent in currency-neutral terms, Footwear (+36 percent c-n) and Apparel (+30 percent c-n) due to stronger pre-orders compared to 2010 and earlier deliveries in Winter Sports Equipment and Apparel. Comparable net sales increased in EMEA by 22 percent, the Americas 12 percent and Asia Pacific by 13 percent.
Group EBIT grew by a third in euro terms to €74.4 million ($105 mm). In local currencies, increased sales volumes contributed €47.6 million ($67 mm) to EBIT growth, and higher gross margins by €2.0 million ($2.8 mm). Operating expenses increased by €24.0 million ($34 mm) driven by increased sales and distribution costs.
Net earnings rose 17 percent in euro terms to €55.3 million ($78 mm) and earnings per share were €0.45 (64 cents) versus 0.38 (49 cents) in the year-ago period.
”The third quarter was strong with good growth in Winter Sports Equipment, Footwear, Apparel, Cycling, Team Sports and Fitness. The growth was further boosted by earlier deliveries compared to 2010 in Winter Sports Equipment and Apparel, and our full-year guidance remains unchanged. Racquet Sports was still adversely impacted by the overall soft tennis market. I’m especially pleased with the progress in our strategy to grow faster in footwear and apparel. The growth which was accelerated in 2010 continued, and in the first nine months of 2011, softgoods grew by 32 percent. We stay on the path set last year as our strategy is working. We continue executing the strategic programs guided by our financial targets, with strong focus on synergies, internal improvement and organic growth.”
WINTER & OUTDOOR
In third quarter, Winter & Outdoor’s net sales totaled €395.7 million ($560 mm), representing an increase of 24 percent in local currencies. Net sales growth was driven by Winter Sports Equipment, Footwear and Apparel.
Winter Sports Equipment
In third quarter, Winter Sports Equipment net sales totaled €185.4 million ($263 mm), representing an increase of 24 percent in local currencies due to earlier deliveries and higher preorders compared to 2010.
Footwear
In third quarter, Footwear net sales totaled €90.7 million ($128 mm), representing an increase of 36 percent in local currencies.
Apparel
In third quarter, Apparel net sales totaled €69.5 million ($98 mm), representing an increase of 30 percent in local currencies.
Cycling
In third quarter, Cycling net sales totaled €28.7 million ($41 mm), an increase of 15 percent in local currencies. The strongest growth was in wheels and cycling shoes.
Sports Instruments
In third quarter, Sports Instruments net sales totaled €21.4 million ($30 mm). Underlying sales excluding the divested businesses was at last year’s level. Sales of outdoor instruments grew by 9 percent.
BALL SPORTS (Wilson Sports)
In third quarter, Ball Sports’ net sales totaled €106.7 million ($151 mm) and was at last year’s level in local currencies. Racquet Sports decline of 9 percent was mainly driven by the soft tennis market. Team Sports continued its good performance and net sales in local currencies increased by 12 percent.
EBIT was -€1.1 million (-$1.6 mm) in third quarter. The decline was due to lower sales volumes and lower gross margins. The gross margins were negatively impacted by lower sales in Racquet Sports.
Racquet Sports
In third quarter, Racquet Sports net sales totaled €47.1 million ($67 mm), representing a decrease of 9 percent in local currencies. Racquet Sports was adversely impacted by the continuously soft tennis market.
Team Sports
In third quarter, Team Sports net sales totaled €45.1 million ($64 mm), an increase of 12 percent in local currencies. The growth in Team Sports was driven by bats and American footballs.
Golf
In third quarter, Golf net sales totaled €14.5 million ($21 mm), a decrease of 4 percent in local currencies. The golf market conditions remained challenging in the Americas as a result of declining rounds played.
FITNESS (Precor)
In third quarter, Precor’s net sales totaled €56.8 million ($80 mm), an increase of 10 percent in local currencies. In local currencies, the Americas was at last year’s level, EMEA increased by 24 percent and Asia Pacific by 36 percent.
The commercial business (clubs and institutions) sales were up by 12 percent in third quarter. The North American commercial fitness market has continued to improve in 2011 while the soft economy has continued to plague the consumer business.
Fitness’ EBIT was €2.8 million ($4.0 mm) in the third quarter, flat to last year. In local currencies, increased sales volumes contributed €3.2 million to EBIT growth while higher gross margins contributed €0.4 million. Operating expenses increased by €3.6 million mainly due to sales and distribution costs.
PERSONNEL
At the end of September 2011, Group employees totaled 7,107 (December 31, 2010: 6,645). The number of employees increased due to strengthening the sales and distribution and increased production in Winter Sports Equipment.
OUTLOOK FOR 2011
In 2011, Amer Sports expects its full-year net sales in local currencies to grow by approximately 9 percent and EBIT margin excluding non-recurring items to improve by approximately one percentage point from 2010.
The company will continue to invest into executing its long-term strategy and sustaining profitable growth. In Winter Sports Equipment, the solid improvement in pre-orders together with operational efficiency measures is expected to have a positive impact on the full-year profitability. Deliveries of pre-orders started 3-4 weeks earlier than in 2010, which impacted the third quarter positively but there is no change in the full-year outlook. In Apparel and Footwear, the deliveries peaked in the third quarter and the full-year outlook remains unchanged.
Outlook given in the Interim Report JanuaryJune 2011 on August 4
Amer Sports’ strategic development programs continue to contribute positively to the Group performance in 2011 and the company will continue to invest into executing the new strategy and sustaining profitable growth. In Footwear and Apparel, fall/winter pre-orders are indicating that the strong momentum will continue. In Winter Sports Equipment, solid improvement in preorders together with operational efficiency measures is expected to have a positive impact on the full-year profitability.
In 2011, Amer Sports expects its full-year net sales in local currencies to grow at a similar rate as in the first half of the year and EBIT margin excluding non-recurring items to improve by approximately one percentage point from 2010.
