Lafuma Group Core Sales Drop 13 Percent in Fiscal 2013

Lafuma Groupe reported sales at continuing operations fell 13 percent in the year ended Sept. 30 and were essentially flat at the division that sells the Millet and Eider brands after excluding currency effects.

The French company reported sales reached €56.0 million ($74 mm) in the fourth quarter, down 27.2 percent compared with €77.6 million ($97 mm) in the fourth quarter of 2012. The 2012 results included €24.8 million in sales from Le Chameau, an equestrian brand Lafuma divested in the first half of fiscal 2013.

Among Lafuma’s continuing businesses, declines remained steepest at the  Boardsports division, where sales of Oxbow branded apparel fell 27.5 percent to €14.0 million ($19 mm). Sales declined 15.5 percent at it Great Outdoors division, which makes Lafuma brand apparel and furniture, to €14.7 million ($19 mm). Sales declined 7.1 percent in the Mountain division (Millet, Eider and Killy) to €27.3 million ($36 mm).

In geographic terms, revenue declined 13.0 percent in France and 20.9 percent internationally.

For the full fiscal year, Lafuma reported sales of €193.6 million, down 27.3 percent. After excluding results from Le Chameau, sales declined 13.8 percent (-12.3 percent c-n) compared with €224.5 million in fiscal 2012.

The biggest negative currency impact in fiscal 2013 came from the depreciation of the yen against the euro. After excluding currency effects, the Mountain division nearly matched fiscal 2012 sales, while the Boardsports and Great Outdoor divisions registered declines. Asian sales were also essentially flat in currency neutral terms, while U.S. sales fell 27 percent.
 
The results showed sales declines at continuing operations slowed from a negative 15.9 percent pace in the first half of the fiscal year to 11.1 percent over the second half.

Based on the remaining order book for the 2013 Autumn-Winter collections, Lafuma expects revenues from continuing operations to continue declining at the same pace into the current quarter.

Lafuma shareholders are expected to vote on whether to sell a 35.3 percent stake in the company to the Calida Group before December. If approved, the sale would raise €20 million in capital for Lafuma and push Calida’s stake to more than 50 percent, which would require Calida to buy out Lafuma’s remaining shareholders.