Lafuma Group FY Revenues Off 6.6 Percent, Le Chameau Sale Imminent

The Lafuma Group consolidated sales revenue for fiscal 2011/12 declined slightly to €248.7 million ($323 mm) due to fourth quarter activity slowing 6.6 percent to €77.6 million ($101 mm) compared to €83 million one year previous.

International activity, driven by Asia (+24.5 percent), the United States (+22.9 percent) and in Europe by Germany (+19.2 percent), grew +6.8 percent to €107.8 million ($140 mm), representing 43.5 percent of total Group sales revenue. This compensates for a decline in activity registered in France (-5.1 percent with sales revenue of €140.9 million).

Sales for the Great Outdoor (Lafuma) division were practically stable over the fiscal year, at -0.4 percent totaling €83.2 million compared to €83.5 million over fiscal 2010/11. Sales for the Lafuma brand grew +2.3 percent with solid performances on the international front (+5.8 percent) and in outdoor furniture (+5.1 percent).

The Mountain division (Millet and Eider) experienced significant growth, with sales up +11.5 percent to €87.1 million over fiscal 2011/12, powered by international sales (+14.6 percent) and footwear lines (+26.1 percent) which have proven to be one of the Millet brand's growth drivers.

Performances experienced by the Board Sports division (Oxbow) are a reflection of its market, with a decline of -16.4 percent to €53.5 million over the fiscal year. This said, it should also be noted that the brand held up well in its own retail network of stores in France, maintaining growth of +2.8 percent.

The Country division (Le Chameau) recorded sales increases of +4.6 percent, including +7.9 percent in export sales; annual sales revenue totaled €24.8 million..

Outlook
Fiscal year results are expected to be significantly lower owing to both the decline in annual sales for the boardsports division and Group sales over the fourth quarter, which is usually the most profitable quarter.

At the same time, the Group has confirmed its control over working capital needs, one of the key objectives for the year. This new downward trend will enable the Group to hold a historically low level of debt, even before the impact of the Le Chameau divesture.

The planned disposal of Le Chameau has been approved by the employee representative bodies. The closing of the sale should occur by the end of 2012.