Amer Sports Corporation reported net sales reached EUR372.6 million ($516.4mm) in the first quarter ended March 31, 2010, up 5% from the same quarter a year ago. Higher sales and higher gross margins helped push EBIT to EUR9.5 million ($13.2mm), representing a EUR16.4 million ($22.7mm) swing from EUR6.9 million (-$9.6mm) a year earlier. Most of the improvement came in the Winter and Outdoor segment, especially Winter Equipment. Sales also rose 5% when measured in local currency terms.
The company said the chances of repeating last year’s improvements are unlikely. It expects the sporting goods market to recover moderately with the pace of the recovery varying significantly from region to region and sport to sport. Amer Sports will continue to focus on improving profitability through improved gross profit and tight cost control, including strict control over working capital.
The Winter and Outdoor segment experienced the most rapid growth during Q1. Profitability in Winter Sports Equipment continued to improve. Excellent product line, good snow conditions and internal measures to improve the profitability had the biggest impact on the development. Driven by strong in-season orders in footwear, progress in Footwear and Apparel was good. Sports Instruments and Cycling also improved compared to the weak Q1/09.
Team Sports grew fastest within the Ball Sports segment, largely due to trade distribution gains achieved in the US. The new BLX line of tennis rackets launched by Racquet Sports during the Q1 enjoyed a positive reception, but shipments were limited by capacity constraints. Golf sales were at the previous year level in what is seasonally a period of low demand.
Difficult market conditions continued in the Fitness segment. Financing remained tight and fitness clubs continued to be cautious about opening new facilities. Ancillary revenues earned by clubs providing services for their members did however increase during Q1.
“We are in a good position to benefit from the expected market recovery, and we expect the favorable development in our profitability to continue during the remainder of the year,” said Paalanne.
Net sales by business segment (All chart figures in euros)
| EUR million | 1-3/ 2010 |
1-3/ 2009 |
Change % |
Change %*) |
% of sales 1-3/2010 |
% of sales 1-3/2009 |
| Winter and Outdoor | 181.7 | 164.4 | 11 | 9 | 49 | 46 |
| Ball Sports | 145.4 | 142.9 | 2 | 3 | 39 | 40 |
| Fitness | 45.5 | 48.0 | -5 | -1 | 12 | 14 |
| Total | 372.6 | 355.3 | 5 | 5 | 100 | 100 |
*) In local currency terms
Geographic breakdown of net sales
| EUR million | 1-3/ 2010 |
1-3/ 2009 |
Change % |
Change %*) |
% of sales 1-3/2010 |
% of sales 1-3/2009 |
| Americas | 158.3 | 163.8 | -3 | 0 | 43 | 46 |
| EMEA | 172.2 | 156.5 | 10 | 8 | 46 | 44 |
| Asia Pacific | 42.1 | 35.0 | 20 | 16 | 11 | 10 |
| Total | 372.6 | 355.3 | 5 | 5 | 100 | 100 |
*) In local currency terms
EBIT by business segment
| EUR million | 1-3/ 2010 |
1-3/ 2009 |
Change % |
Change %*) |
% of sales 1-3/2010 |
% of sales 1-3/2009 |
| Winter and Outdoor | 1.7 | -10.9 | 1.0 | |||
| Ball Sports | 14.4 | 11.5 | 25 | 26 | 9.9 | 8.0 |
| Fitness | -0.7 | -3.4 | ||||
| Headquarters | -5.9 | -4.1 | ||||
| Total | 9.5 | -6.9 | 2.5 |
*) In local currency terms
BUSINESS SEGMENT REVIEWS
WINTER AND OUTDOOR
| EUR million | 1-3/2010 | 1-3/2009 | Change % | Change %*) | 2009 |
| Net sales | |||||
| Winter Sports Equipment | 42.3 | 37.0 | 14 | 13 | 371.7 |
| Apparel and Footwear | 91.0 | 82.5 | 10 | 7 | 304.7 |
| Cycling | 29.3 | 27.2 | 8 | 9 | 100.4 |
| Sports Instruments | 19.1 | 17.7 | 8 | 7 | 85.8 |
| Net sales, total | 181.7 | 164.4 | 11 | 9 | 862.6 |
| EBIT | 1.7 | -10.9 | 46.5 | ||
| Personnel, period end | 4,002 | 3,776 | 6 | 3,940 |
*) In local currency terms
| EUR million | 1-3/ 2010 |
1-3/ 2009 |
Change % |
Change %*) |
2009 | % of sales 1-3/2010 |
% of sales 1-3/2009 |
| Americas | 31.4 | 35.5 | -12 | -13 | 181.2 | 17 | 21 |
| EMEA | 128.9 | 114.3 | 13 | 11 | 585.3 | 71 | 70 |
| Asia Pacific | 21.4 | 14.6 | 47 | 43 | 96.1 | 12 | 9 |
| Total net sales | 181.7 | 164.4 | 11 | 9 | 862.6 | 100 | 100 |
*) In local currency terms
Apparel and Footwear
Cycling
Sports Instruments
BALL SPORTS
| EUR million | 1-3/2010 | 1-3/2009 | Change % | Change %*) | 2009 |
| Net sales | |||||
| Racquet Sports | 64.3 | 63.9 | 1 | 1 | 222.7 |
| Team Sports | 60.8 | 59.3 | 3 | 7 | 187.3 |
| Golf | 20.3 | 19.7 | 3 | 1 | 66.7 |
| Net sales, total | 145.4 | 142.9 | 2 | 3 | 476.7 |
| EBIT | 14.4 | 11.5 | 25 | 26 | 23.5 |
| Personnel, period end | 1,584 | 1,695 | -7 | 1,586 |
*) In local currency terms
Ball Sports net sales totaled EUR 145.4 million (142.9) and were 3% up in local currencies. Growth was driven by Team Sports while sales in both Racquet Sports and Golf remained at last year’s level. Growth of 6% in the Americas reflected the positive development in Team Sports.
| 1-3/ 2010 |
1-3/ 2009 |
Change % |
Change %*) |
2009 | % of sales 1-3/2010 |
% of sales 1-3/2009 |
|
| Americas | 92.9 | 91.2 | 2 | 6 | 298.6 | 64 | 64 |
| EMEA | 35.0 | 34.3 | 2 | 0 | 111.6 | 24 | 24 |
| Asia Pacific | 17.5 | 17.4 | 1 | -4 |
