France’s Groupe GO Sport reported fourth quarter sales declined 1.6 percent to €159.6 million ($217mm), or 1.7 percent in currency-neutral (c-n) terms, as declines at its flagship GO Sport operation in France more than offset growth at Courir, the footwear chain that is having growing success outside the running space.


Sales during the quarter declined 5.0 percent (-5.7 percent c-n) to €101.0 million ($137mm) at its flagship GO Sport France chain, 5.9 percent (-5.7 percent c-n) to €11.6 million ($16mm) at GO Sport Poland, while increasing 7.6 percent (+11.3 percent c-n) to €45.5 million ($62mm) at Courir and 25 percent to €1.5 million at Divers.


 

Full year sales for the Group reached €641.9 million ($852mm), down 5.0 percent (-4.6 percent c-n) from 2012. Executives said the number concealed strong performance at Courir and growing revenues from international franchisees. On a c-n basis, full-year sales fell 7.2 percent at GO Sport France; declined 2.3 percent at GO Sport Poland and increased 2.3 percent at Courir, which reported its fourth consecutive year of sales growth.


 

Group gross margins declined 70 basis points (bps) to 40.4 percent for the year, due primarily to lower sales and higher discounting that enabled the Group to reduce inventory by €19.6 million and net debt by €16.1 million compared to levels reported for the year ended Dec. 31, 2012.  Group  EBIDTA improved dramatically to a -€500,000, from – €9.3 million reported for 2012.  The Group narrowed its operating loss for the year to -€8.7 million (-$12mm) from -€9.2 million in 2012.

 

Net income reached -€17.3 million, an improvement compared to -€21.9 million in 2012, thanks in part to proceeds from the sale of a Courir lease on the Champs -Elysées.

 

Andre Segura, who was named Group CEO in October after successfully repositioning Courir from 2011 to 2013, said several initiatives undertaken in the fourth quarter appear to be helping turn around GO Sport France. For instance, the chain launched a promotion offering a 35 percent discount on 35 percent of its products to celebrate its 35th anniversary and reinforce its position as the country’s most affordable source of sporting goods. 

 

Courir adds basketball, Vans, Ugg and Timberland

Traffic and sales at courir.com grew three- and 13-fold respectively as consumers responded to its expanded offering of basketball shoes, Vans footwear, the introduction of Uggs and an exclusive promotion with Timberland in December. It added 850,000 new loyalty program members, who generated 34 percent of 2013 sales compared with 28 percent at the end of 2012.

 

The Group also reported that income from international franchisees increased by 23 percent in 2013, demonstrating strong demand for the GO Sport banner abroad. Franchisees opened stores in Morocco and Tunisia for the first time and added six new stores in Belgium. Al Mana, the Group’s master franchisee in the Middle East, signed a new agreement that calls for it to open 40 GO Sport and Courir shops over the next 10 years.


 

In 2014, GO Sport France will focus on strengthening its partnerships with international brands both in its shops and online; granting more autonomy to store managers; building its loyalty program; opening new stores; and cutting procurement and logistics costs.  Courir will focus on improving multi-channel execution by launching new e -commerce sites in second half of the year; opening of five news stores in France and the launching the in-house C brand.