Flat demand for tennis, golf and team sports equipment, fierce competition in golf equipment and weakening demand for winter sports equipment due to poor early season snow conditions in many key markets leaves the prospects for 2003 clouded in uncertainty.
That is the view for the coming year based on the recently released year-end financial report from Amer Group Plc.
Anyone else wanna just stay in bed this morning?
The parent company of Wilson, Atomic, Suunto and Precor had to rely on its Tobacco division and the Q4 acquisition of Precor to post flat sales and profits for 2002. The company did indicate that growth in demand for sports instruments and fitness equipment is expected to continue.
Full year 2002 Racquet Sports sales decreased 7.9% to 243.9 million ($263.7mm). Comparable net sales in local currencies fell by 3%, while operating profit rose by 4%. Operating profit was 25.6 million ($27.7mm).
The Golf Division saw 2002 net sales decline 9.6% to 213.3 million ($230.6mm). Comparable net sales in local currencies declined by 5%. The division posted a 7.1 million ($7.7mm) operating profit in 2002 against a 3.3 million ($3.6mm) loss in 2001. Sales of upper-end clubs rose significantly, but golf ball sales weakened for the year.
Net sales and operating profit in the Team Sports Division were essentially flat at 203.9 million ($220.4mm) and 24.0 million ($25.9mm) respectively. Comparable net sales in local currencies rose by 6%. Sales of baseball gloves were up 21%.
Winter Sports net sales rose slightly to 201.6 million ($217.9mm). Operating profit was 39.6 million ($42.8mm).
Suuntos net sales rose 2.3% to 85.3 million ($92.2mm) and operating profit inched up to 10.5 million ($11.4mm) for the year. Wristop computers and diving instruments accounted for 60% of Suuntos net sales.
KEY METRICS:
- Wilson market share is 35% in tennis racquets
- Wilson has 22% market share in tennis balls
- Sales of alpine skis rose by 6.0%
- The U.S. Winter Sports business grew 9.0%
- Sales of wristop computers rose by 20%
- Diving instruments sales increased 7.0%
- North America generated 51% of total sales
- North America sales dipped 1.0%
