Le Coq Sportif reported that the company’s first-half business fell short of expectations, slowing slightly, with sales of €63.2 million ($58.5 mm), declining 3 percent compared to €64.8 million in the 2022 first half.
Growth in Le Coq Sportif’s apparel and accessories businesses was offset by declines in footwear for the six-month period ended June 30. The company’s first half results were published in the Airesis holding company interim report. Airesis acquired Le Coq Sportif in 2005.
- Apparel sales were up 8 percent year-over-year (YoY) in the 2023 first half;
- Accessories sales doubled from €1 million in H1 2022 to €2 million ($1.9 mm) in H1 this year; and
- Footwear sales were down €7 million ($6.5 mm) in the first half, compared to the year-ago comp period.
The company said the footwear decline was partly due to the decrease in footwear exports, particularly to Spain, for a “slight drop” in sales.
At 44 percent of sales, the gross margin was flat to the year-ago H1 period. The first half was marked by significant destocking operations, impacting the margin. Operating expenses were €33.8 million ($31.2 mm) in the first half, compared to €31.9 million in the year-ago period.
The company posted an EBIT loss of €8.2 million ($7.5 mm), compared to a loss of €6.1 million in H1 last year. The net loss was €10.5 million ($9.7 million) for the Le Coq Sportif business in the first half, compared to €6.3 million in the 2022 first half.
Le Coq Sportif completed moving its Asia textile production back to its historic factory in Romilly-sur-Seine and the Mediterranean basin. The company said the new warehouse, inaugurated two years ago, has “perfectly achieved its objectives of improving productivity” and bringing the production sites located in the Aube region closer together, thereby optimizing logistics flow.
The extension of the Romilly-sur-Seine factory and headquarters, whose construction began in September 2021, was inaugurated in June 2023. With an additional 3,000 square meters of floor space, the space will reportedly “allow the company to strengthen its teams and manufacture the podium and performance outfits for the Paris 2024 Olympic and Paralympic Games.” The outfit for the French rugby national team, the XV de France, participating in the Rugby World Cup, which is taking place in France, was also manufactured there.
Le Coq Sportif said a strong sales momentum related to the Rugby World Cup was observed at the end of August 2023. The company reported, “The visibility provided by the Rugby World Cup 2023 and the enthusiasm associated with this event give the Group confidence that earnings will recover in the second half of the year.
Photo courtesy of Le Coq Sportif