In April, BOSS reported that The Lafuma Group was showing some positive sales results for its fiscal first half-year with a 7.0% increase in total sales to 87.3 million ($113.9 mm), compared to 81.6 million ($98.2 mm) last year. International sales within the group are showing similar results, with sales up 7.6% to 38.4 million ($50.1 mm), compared to 35.7 million ($43.0 mm).
More recently Lafuma reported their earnings for the same period, and the Groups international expansion seems to be paying off. Even though operating income fell 12.5% to 4.5 million ($5.9 mm) due to the relocation of certain manufacturing facilities, Lafumas net income jumped 63.1% to 2.6 million ($3.4 mm) compared to 1.6 million ($1.9 mm) for the first half last year. The increases in net income were the result of the integration of goodwill from the Ober acquisition last year.
Management said that there has been a positive response to its product collection in spite of a “wait and see” atmosphere at retail. Likewise, sales increases were spurred by an increased presence in Asia, particularly South Korea, Hong Kong, and Tokyo. Lafumas Millet and Le Chameau brands were said to have “positive sales trends” in most geographic regions, with notable exceptions in France, Benelux, and Germany.
Management also said that with the recent acquisition of Oxbow, Lafuma will be creating a fourth division for board sports. 2006 fiscal year sales are expected to reach 250 million with the Group gaining “significant” market share in each of its divisions.