Amer Sports said its net sales decreased 6% to €433.2 million, ($658.5mm) in the third quarter ended Sept. 30 due to later shipments of snowsports equipment to retailers and plummeting consumer sales of fitness equipment in North America. The company’s outdoor brands, Salomon and Arc’teryx, however, continued to post 20% sales gains.



 

“Amer Sports’ business developed in the third quarter according to our expectations except for the Fitness segment,” said Roger Talermo, president and CEO. “The challenging conditions in the North American consumer market have continued to affect Precor’s consumer business more than we previously anticipated, and we have experienced major difficulties in our dealer network.”


 


Companywide, AMY reported earnings before interest and taxes, or EBIT, was also below last year’s level, but said its order book for the remainder of the year is higher than it was at the same time last year.


 


“The high-season for winter sports equipment shipments to retailers started somewhat later than last year and consequently our sales in local currencies were 13% lower in the quarter compared with last year,” said Talermo. “Thanks to clearly more pre-order deliveries booked for Q4 and as a result of already completed profitability-improving measures, the Winter Sports Equipment business is set to improve its profitability substantially already this year.”


 


Net sales in local currency terms decreased 2% in the third quarter, usually the company’s second biggest after the fourth quarter. Net sales by business segment were as follows:




  • Winter and Outdoor 62% (Winter Sports Equipment 31%),


  • Ball Sports 25% and


  • Fitness 13%.

Net sales in local currency terms fell 2% for the Winter and Outdoor segment. That consisted of a decline of 13% for Winter Sports Equipment, a 26% increase in Apparel and Footwear (Salomon and ArcTeryx) , a 14% decline for Cycling (Mavic) and a 5% increase for sports instruments (Suunto).


 


 


 


The success in Apparel and Footwear continues with net sales increasing 20% in local currency terms. The Central European countries were leading the success, Salomon being the fastest growing brand in the outdoor footwear market. The sell-out of Salomon and Arc’teryx products continues to be strong, and pre-orders for spring/summer 2009 are growing at a double-digit pace.


 

“Our success in Apparel and Footwear business has continued with both sales and earnings growing more than 20% in the third quarter,” said Talermo. “This is primarily the result of Salomon’s award-winning outdoor footwear and continued strong growth of the Arc’teryx brand. The outlook continues to be encouraging with pre-orders for the spring/summer 2009 season growing at a double-digit rate.”

 

In ball sports, net sales rose 8% in local currencies. Racquet Sports net sales rose 7%, Team Sports rose 15%, while Golf fell 5%, in part due to the decision license the business in Japan. 

 


The real damage was in the fitness segment (Precor), where net sales fell 18% in local currency due to rapidly declining consumer sales in North America. Amer Sports said Precor’s commercial business remained solid through the third quarter.


 


The Group’s third quarter earnings before interest and taxes (EBIT) amounted to €51.5 million ($78.3mm). Earnings before taxes were €43.8 million ($66.6mm). Earnings per share were €0.45. Net financial expenses amounted to €7.7 million ($11.7mm).


 


“Given the weak worldwide consumer confidence, Amer Sports’ outlook is more uncertain than normally at this time of the year,” said Talermo. “With this in mind and as the last quarter is seasonally the strongest for Amer Sports, we currently anticipate full-year operating results to be between €80-90 million.”