Lafuma Groupe generated a negative operating result before one-time items of €4.4 million for the three months ended Dec. 31, 2013, compared with -€6.6 million a year earlier, according to financial information released by its new parent company Calida Group of Switzerland.
Calida acquired 60 percent control of Lafuma on Dec. 23 and will include its share of Lafuma’s results from the quarter in its results for its fiscal year ended Dec. 31 2013. Calida expects to recognize €200,000 in Lafuma losses and take a non-cash charge of €7 million to reflect the decrease in the value of a 15.3 percent stake it owned in Lafuma prior to recapitalizing the company.
Lafuma reported Jan. 30 that its sales from continuing operations reached €41.4 million during the quarter. Exchange rates, mainly related to sales in Japan, reduced sales by €1 million, but sales grew 2.8 percent in currency-neutral (c-n) terms, marking a big improvement over a 15.7 percent c-n decline reported for the year earlier quarter.
Lafuma attributed the c-n growth to an unusual €1 million, or 21.3 percent, surge in sales at its Board Sports division, where sales are expected to decline in 2014.
Sales at the Great Outdoor Division, which owns the Lafuma brand, reached €11.9 million, up 1.8 percent c-n. That included apparel and gear sales of €9.6 million and furniture sales of €2.3 million. Sales at the Mountain Division, which owns the Eider, Killy and Millet brands, declined 0.2 percent c-n to €24.1 million. Sales in Lafuma’s native France were flat at €23.8 million and grew 6.9 percent c-n internationally to €17.6 million.
Lafuma reported Jan. 30 that its Outdoor and Board Sports division continued to face stiff competition in a shrinking market, particularly in Europe where the Group earns 80 percent of its revenues. Based on its current order book, Lafuma forecast its operating losses would gradually decline on lower sales in 2014.
