Amer Sports reported net sales in the first quarter reached €493.0 million, up  2 percent in local currencies. The fastest growth took place in Apparel, up by 25 percent, in Fitness, up by 6 percent and in Sports Instruments, up by 4 percent. Sales in Winter Sports Equipment, Footwear, Cycling and Individual Ball Sports were at last year’s level. Team Sports sales declined by 9 percent.

Gross margin was 44.2 percent (44.2). Gross margin continued to improve in Apparel and Footwear, and was at same level in the other business areas compared to last year, except in Fitness, where it declined due to adaptation of new timing for vendor rebates recognition and due to a temporarily changed product mix.

Group EBIT was € 26.4 million (29.6). In local currencies, increased sales volumes contributed approximately € 4 million to EBIT. Operating expenses increased by approximately € 10 million driven by sales and distribution costs in Apparel and Footwear. Other income and expenses and currencies impacted positively by approximately € 3 million on EBIT.

Net financial expenses were € 6.7 million (5.4) including net interest expenses of € 5.8 million (4.9). Net foreign exchange losses were € 0.4 million (0.5). Earnings before taxes totaled € 19.7 million (24.2) and taxes were € 4.9 million (5.4). Earnings per share were € 0.13 (0.15).

Winter and Outdoor’s net sales in the review period were € 266.5 million (256.5), an increase of 5 percent in local currencies.

EBIT was € 14.2 million (10.7). Increased sales volumes improved EBIT by approximately € 6 million and higher gross margins contributed approximately € 4 million. Operating expenses increased by approximately € 6 million (all in local currencies).

Winter Sports Equipment
Winter Sports Equipment’s net sales were € 42.8 million (43.7), and were at last year’s level in local currencies. Net sales of alpine ski equipment decreased while sales of cross country ski equipment and snowboards increased. Net sales increased in EMEA by 2 percent, and decreased in the Americas by 2 percent and Asia Pacific by 4 percent.

Footwear
Footwear’s net sales were € 102.3 million (104.1), and were at last year’s level in local currencies. Sales of trail running and outdoor performance products increased in North America, Russia and Japan, and decreased in Central Europe.

Apparel
Apparel’s net sales were € 63.1 million (51.2), an increase of 25 percent in local currencies. Growth was generated by both main brands, Salomon and Arcteryx, and occurred in all geographical regions.

Cycling
Cycling’s net sales were € 36.6 million (36.3), and were at last year’s level in local currencies. Sales of cycling helmets and footwear continued to grow.

Sports Instruments
Sports Instruments net sales were € 21.7 million (21.2), an increase of 4 percent in local currencies. The sales increase in outdoor instruments was driven by the Suunto GPS watch and dive instruments range.

Ball Sports net sales in the review period were € 164.0 million (173.6), a decrease of 4 percent in local currencies. The decrease was due to continued industry-wide trade destocking in baseball bats, and late start of the spring season.

 EBIT was € 17.4 million (19.9), impacted by lower sales volumes. Operating expenses remained at last year’s level (all in local currencies).

Individual Ball Sports
Individual Ball Sports net sales were € 95.5 million (97.6), and were at last year’s level in local currencies. Sales of tennis rackets were negatively influenced by a change in cadence of product launches from the first quarter of the year to the fourth quarter to better meet market demands, and late start of the spring season. Golf’s sales increased driven by new product launches and expanded distribution.

Team Sports
Team Sports net sales were € 68.5 million (76.0), a decrease of 9 percent in local currencies. As a result of the industry-wide baseball bat destocking, sales of DeMarini baseball bats declined by 33 percent.

Fitness net sales in the review period were € 62.5 million (59.7), an increase of 6 percent in local currencies. The commercial business (clubs and institutions) sales were up by 5 percent and consumer business (home use) by 10 percent in local currencies.

 
EBIT was € -0.4 million (3.9) mainly due to lower gross margin which declined due to adaptation of new timing for vendor rebates recognition and more strength equipment based sales mix. Increased sales volumes contributed approximately € 1 million to EBIT, offset by higher sales and distribution expenses (all in local currencies).
 
Personnel
At the end of March, the number of Group employees was 7,236 (Dec. 31, 2012: 7,186). The increase came mainly from personnel working in sales and distribution. The increase in Headquarters and shared services was due to establishing a shared financial service center in the EMEA region which will bring scale and synergy benefits.
 
GROUP-WIDE RESTRUCTURING PROGRAM
Amer Sports restructuring program, started at the beginning of November 2012, is continuing as planned. The program will drive further scale and synergies and cost efficiencies, as well as sustain growth through resource allocation especially into softgoods and expansion markets and channels. The program is estimated to deliver an annual cost saving of € 20 million once fully executed by the end of 2014. The program contributes to reaching the Group’s long-term profitability target of 10 percent EBIT. The expected headcount impact of the restructuring program once fully implemented is approximately 250, mainly in Winter and Outdoor.

OUTLOOK FOR 2013
In 2013, Amer Sports net sales growth in local currencies is expected to meet at minimum the company’s long-term annual 5 percent growth target and EBIT margin excluding non-recurring items is expected to improve from 2012. Amer Sports expects the trading environment to remain challenging in 2013.  The company will continue to focus on softgoods growth, consumer-driven product and marketing innovation, commercial expansion and operational excellence. In 2013, Amer Sports net sales in local currencies and EBIT excluding non-recurring items are expected to increase from 2012.