French outdoor clothing maker Lafuma said full-year sales rose 2.7%,
less than it expected as a warmer-than-expected winter hit demand for
climbing clothes and a cold summer affected sales of camping gear.
Sales for its fiscal year ended Sept. 30 increased to 250 million
($357 mm) from 243 million ($347 mm), with 7.5% growth in exports
offsetting a flat performance in France and growth at its recently
acquired surfing brand, Oxbow.
Among its brands, Le Chameau sales increased 11.6%, Lafuma declined
2.3%, Millet was up 1%, and Oxbow sales were up 9%. Both Lafuma and
Millet were hurt by a slowdown in fourth quarter sales due to
unfavorable weather conditions, as well as year-end hold-ups on
deliveries impacting both Lafuma and Millet. Oxbow's performance was
driven by strong surfing fashion trends, the success of its brand
stores, and export growth of 13%.
International sales grew to 102.7 ($147mm) driven by sales in Central
Europe, which grew +25%. Sales in Asia, particularly China were also
strong.
Lafuma predicted earnings for 2007 will be impacted by below-plan sales
as well as by provisions for restructuring, but the company said fiscal
2008 “has already begun with comparatively high growth in sales.”
