Lafuma Groupe reported sales of €193.6 million ($253.9 mm) in fiscal 2012/13, declined 27.2 percent from fiscal 2012, or 12.3 percent in currency neutral terms, according to preliminary numbers released by the French company Monday.

 

As anticipated, the negative trend noted over the first three quarters was confirmed in the fourth quarter. Sales declined 11.1 percent over the second half-year, compared with -15.9 percent in the first half-year. Comparable sales revenue – or revenue excluding discontinued sales – was €193.6 million, down 13.8 percent from the €224.5 million in the previous fiscal year. Given the effect of a negative exchange rate on business of -€3.4 million, mainly stemming from fluctuation in the Japanese yen, the like-for-like decline in sales at an even exchange rate was 12.3 percent.

 

Over the entire fiscal year, the Mountain division just about held up its same level of business, whereas the Boardsports and Great Outdoor divisions registered declines in sales at a constant exchange rate:

 


  • Boardsports division (Oxbow): Sales declined 29.3 percent on top of a -16.4 percent decline the previous fiscal year. With marked difficulties experienced in the boardsports market impacting the full spectrum of brands worldwide, the Oxbow brand has continued to decline, particularly in wholesale activities.
  • Great Outdoor division (Lafuma): Sales declined 11.5 percent over the fiscal year, following stabilization in business over the previous fiscal year (-0.4 percent). Sales of apparel and equipment fell 11.1 percent while sales of furniture declined -9.1 percent.
  • Mountain division: Sales declined 2.4 percent as growth stalled at the Millet, Eider and Killy brands compared with 11.5 percent growth in 2011/2012. The Millet brand (-1.0 percent) has held up well, owing to the implementation of a coherent product and sales strategy.

All of the Group brands operate on a particularly difficult market in France (-11.9 percent) and in Europe (-13.9 percent). Minus the exchange rate effect, performances in the Asian market have been satisfactory with a stabilization of real sales, and this bearing in mind the termination of marketing Lafuma products in Japan in the second half-year owing to a partnership agreement with the World group. Business in the United States decreased sharply, down 27 percent, excluding the exchange rate effect, mainly due to declines in textiles/equipment.


 

Based on the remaining order book for the 2013 Autumn-Winter collections, the present decline in sales revenue will most likely continue into the first quarter of the present fiscal year.