Lafuma saw strength in international markets help to offset weakness at home as sales grew in the mid-singles for the companys fiscal year ended September 30, 2007. Despite difficult weather conditions, the company reported that revenues for the fiscal year increased 3.1% to 250.5 million ($333.3 mm) from 243.0 million ($299.1 mm) the year before. Sales outside of France increased 8.1%. Net income, however, decreased 31.8% to 3.0 million ($4.0 mm) from 4.4 million ($5.4 mm) in the previous fiscal year.
Decreases were posted mainly by Lafuma and Millet as sales for the two brands were hit hardest by unfavorable weather conditions, as well as by delivery delays. The company estimated the combined impact at 4 million in sales. Lafuma slightly improved its operating loss, at -2.5% versus 2.7% including a restructuring provision of 0.9 million. Millet posted operating profit growth of 7.7% compared to 10.6% growth in 2006. The turnaround in sales for Le Chameau (+11.5%) and in operating margins (5% versus 1.6%) helped to offset the Lafuma softness, and the steady growth of Oxbow sales (+9.8%) and profits (11.1% versus 12.6%) aided, as well.
The eight new store openings over the second half of the fiscal year had a negative impact of about 600,000 on operating profits, while the international business was impacted by operating expenses, up 650,000, a large portion of which can be considered as investments for the future of the group. This can be viewed in the light of growth posted in export sales of 8.1%, with the English subsidiary experiencing 17% growth in net profits.
