LaFuma Group reported sales revenue totaled €52.4 million ($71.3mm) in its first quarter ended Dec. 31, 2010, up 1.9% from a year earlier. Sales were hurt by by the gradual winding down of the company's Chinese joined venture and transition toward a new structure in partnership with LG Fashion. Excluding the costs of this changeover in China, growth for the quarter would have been 3%, thanks to a strong performance by its Millet brand.
Results broken down by division were:
- Great Outdoor: Sales declines 4.1% to €13.6 million ($18.5mm) due largely to the winding down of the Chinese JV and the decline in the Ober brand. The Lafuma brand experienced growth of 0.6% even without sales in China. A healthy order book points to continued improvements in sales into the second quarter and over the current fiscal year;
- Country: Sales of the Le Chameau brand slipped 1.1% to €5.4 million ($7.3mm), but the business, which caters to the equestrian lifestyle, grew 5.7% in France;
Board Sports: Sale of the Oxbow brand declined 11.2% to €8.9 million ($12.1mm) due to the impact of inventory reduction operations carried out at the end of 2009 in France. However, international activities have registered a reversal of this trend (+0.7%); - Mountain: Sales rose 12.7% to €24.4 million ($33.2mm), mainly owing to the growth of Millet in Europe. The division also markets the Eider brand.
During the first quarter of 2010/11, the Lafuma Group made a comeback in growth across Western Europe, with the exception of Great Britain, and regained the market share it had lost over 2009/2010.
The Group foresees continued growth in sales revenue over the first half of 2010/11, with a higher growth rate over the second quarter compared to the first.
