Amer Sports net sales in the first quarter decreased 9% to 381.8 million ($500.3 mm) from 417.4 million ($501.9 mm) in 2006. Net sales declined by 4% in local currency terms. Net sales by business segment were as follows: Salomon 29%, Wilson 43%, Precor 19%, Atomic 3% and Suunto 6%. Salomon's sales declined by 10%, Wilson's by 8% and Atomic's by 47%. Precor's sales were on par with the previous year. Suunto's net sales increased 11%. In local currency terms, Salomon's sales were down 8%, Atomic's 46% and Wilson's 2%. Precor's sales rose by 9% and Suunto's by 16%.
The split of net sales by geographical segment was as follows: the Americas (including Latin America) 54%, EMEA (Europe, Middle East, Africa) 37%, and Asia Pacific 9%. Sales in the Americas declined by 6%, in EMEA by 11% and in Asia Pacific by 14%. In local currency terms, net sales were up 2% in the Americas and down 10% in EMEA and 8% in Asia Pacific.
The Group's EBIT amounted to a loss of 7.8 million ($10.2 mm).
Earnings before taxes were a loss of 14.6 million ($19.1 mm), expanding from a loss of 3.3 million ($4.0 mm) last year. Earnings per share came in at a loss of 0.15 (20 cents), widened from a loss of 0.03 (4 cents) last year. Net financial expenses amounted to 6.8 million ($8.9 mm).
BUSINESS SEGMENTS
SALOMON
|
EUR million |
Q1 2007 |
Q1 2006 |
Change % |
Change LC % |
2006 |
|
Net sales |
|
|
|
|
|
|
Winter |
19.8 |
43.4 |
-54 |
-54 |
345.6 |
|
Apparel |
60.5 |
50.8 |
19 |
23 |
208.0 |
|
Mavic |
30.2 |
29.1 |
4 |
6 |
107.8 |
|
Net sales, |
110.5 |
123.3 |
-10 |
-8 |
661.4 |
|
EBIT |
-22.6 |
-22.4 |
-1 |
|
23.6 |
Salomon's Q1 net sales declined by 8% in local currency terms. The breakdown of net sales was as follows: Winter Sports Equipment, 18%, Apparel and Footwear, 55%, and Mavic, 27%. Of net sales, EMEA generated 71%, the Americas 22%, and Asia Pacific 7%. Sales in local currencies were up 6% in the Americas and down 10% in EMEA and 25% in Asia Pacific.
In the first quarter, Salomon's EBIT was on a par with the previous year even though sales declined. The impact of the sales decline was compensated for by the synergies that were achieved and higher efficiency in cost control. The development of apparel and footwear sales was strong. Mavic's sales grew in line with plans.
Business areas
Salomon's net sales of winter sports equipment declined by 54% in local currency terms when retailers downscaled inventory levels after the weak winter. The largest decline in net sales was seen in Europe, where the scarcity of snow impacted particularly on re-orders of cross-country skiing equipment. Sales for the 2007/2008 season appear to fall about 15-20% short of the previous season. Salomon has adjusted its production plans and inventory levels to match.
Net sales of apparel and footwear increased by 23% in local currencies. Solid footwear sales were driven by strong demand for Salomon's trail running shoe collection. Sales of the spring/summer apparel collection were also robust. Pre-orders for apparel and footwear for the fall/winter of 2007/2008 have almost been completed. Judging from the amount of pre-orders, the solid trend in sales of apparel and footwear is expected to hold.
Bicycle component manufacturer Mavic's net sales increased by 6% in local currency terms. The market for bicycle components was stable in the first months of the year.
WILSON
| EUR million | Q1 2007 | Q1 2006 | Change % | Change LC % | 2006 |
| Net sales | |||||
| Racquet Sports | 65.1 | 65.8 | -1 | 4 | 235.3 |
| Team Sports | 66.7 | 75.3 | -11 | -4 | 219.6 |
| Golf | 31.8 | 37.2 | -15 | -9 | 114.7 |
| Net sales, total | 163.6 | 178.3 | -8 | -2 | 569.6 |
| EBIT | 19.8 | 24.3 | -19 |
