5Groupe Go Sport reported that net sales at its Courir retail chain in France grew 19.7 percent in the third quarter as students snapped up its assortment running, skate, basketball and casual shoes during the back-to-school season.

Sales at Courir, which is the French word for run, soared 19.7 percent to €51.4 ($68 mm) due to strong
back-to-school sales that lifted same-store sales by 22.2
percent c-n compared to the year earlier quarter.

With 156 stores in France, Courir caters to urban customers aged 15-25 by offering the best of the biggest brands in sports and street wear fashion, including sneakers, skate shoes, boots, ready-wear and accessories. Its brands include DC, Nike, Jordan, Adidas, Vans, Reebok, Converse New Balance, Timberland and Ugg as well as a handful of European brands.

Courir remodeled four stores, opened two and added an
affiliate during the quarter and has enrolled more than 800,000 customers in its loyalty program.

The growth at Courir helped drive Groupe Go Sport’s consolidated net sales to
€180.3 million ($243 mm), up 5.1 percent from the quarter ended Sept.
30, 2013. Same-stores sales across Groupe Go Sport’s retail banners grew
6.4 percent in currency neutral (c-n) terms. In France, Go Sport sales were flat at €112.8 million ($150 mm), despite a 2.0 percent increase in same-store sales, thanks to intense and ongoing  promotional activity and good back-to-school results. Sales dipped 1.4 percent to €13.6 million ($18 mm) at Go Sport Poland amid increasing competition.  Same-store sales declined -5.2 percent c-n. 

For the first nine months ended Sept. 30, 2014, Groupe Go Sport reported net sales rose 0.6 percent to €485.4 million ($658 mm) on comp store growth of 1.7 percent c-n.  The company said it paved the way for new growth during the quarter by signing an memorandum of understanding that calls for it to take over purchasing for the retailing cooperative Twinner France. Under the agreement, the co-op’s member retailers could sign contracts  to affiliate with Groupe Go Sport.

Groupe Go Sport also announced that French regulators cleared the way Oct. 14 the French supermarket retailer Rallye Group to buy the remaining 6.3 percent of Groupe Go Sport it  does not already own at a price of €9.10 per share. The “squeeze out” will allow Groupe Go Sport management to eliminate costs and constraints associated with being a public company.

Groupe Go Sports said its financial situation had not changed significantly since it announced its  results for the first half, when losses more than doubled compared with a year earlier. The company reported second quarter sales grew 3.9 percent to €149.9 million ($205mm) in the quarter ended June 30, or 5.8 percent in currency-neutral (c-n) terms.

As of Sept. 30, Groupe Go Sport operated 339 retail, including 179 Go Sport (29 international franchises and 10 affiliates in France) and 160 Courrir (2 franchises abroad and two affiliates in France).

                                     Groupe Go Sport

          Financial Results for Quarter and 9 months Ended Sept. 30

                         Results expressed in millions of euros

Third Quarter

 2013

 2014

 Change

 Same-store Sales

GO Sport France

112.5

112.8

0,2%

2.0%

GO Sport Pologne

13.8

13.6

-1.4%

-5.2%

Courir

43.0

51.4

19.7%

22.2%

Divers**

2.1

2.5

Total

171.5

180.3

5.1%

6.4%

              France

156.2

164.9

5.6%

7.3%

International

15.2

15.4

1.0%

-5.2%

 

Nine Months: