LaFuma Group reported revenues in the first half ended March 31 declined 6.5%, or 4.1% at constant exchange rates. Losses were trimmed to €800,000 ($960,000), compared to net losses of over €3.2 million ($3.8 mm) in the comparable period a year ago, which included €4.7 million ($5.6 mm) in profit from the sale of the Millet trademark in South Korea.
LaFuma, which owns the Millet, Oxbow, Oberf, Eider and Le Chameau outdoor brands, said it had reduced external expenditures by 17% during the period. The company also reduced inventory levels by €17 million, or 25% from the same period a year ago. Finally, the group reduced its net financial debt to €58 million, lowering its gearing ratio to 52%. That reduced debt costs to €2.5 million from €3.2 million during the period.
The cost cutting will continue this year as Le Chameau centralizes its French manufacturing operations to a single site located at Pont d’ Ouilly (Calvados). This will involve closing its boot manufacturing factory located at Châteauvillain (Haute-Marne). Le Chameau is best known in Europe’s sport shooting, hunting and equestrian communities for its hand-made rubber boots, but now offers a complete line of performance and lifestyle outdoor apparel. The company hired Lipsey’s Distribution of Baton Rouge, LA to build the business in the United States last year.
LaFuma has also signed an agreement for the creation of a joint-venture with its South Korean partner LG Fashion to develop the brand in China.
