Lotto is hitched to the rising worldwide popularity of soccer and has posted a strong first half-year with sales increasing 3.1% to 135.1 million ($166.0 mm), compared to 131.1 million ($144.9 mm) in 2003. Direct sales were 95.4 million ($116.1 mm), a 1.0% rise from 2003, while licensee sales increased 9.6% to 39.7 million ($48.8 mm).
The brands sales throughout Europe were relatively stable, with the exception of France and Germany, which together reported gains in excess of 10%. Lottos new distribution in Greece, Belgium and Holland is now managed directly by Lotto through a network of sales agencies. This new arrangement has helped the company nearly double sales in these countries.
Footwear accounted for 50% of total sales, followed by clothing at 46% and accessories making up the difference. Performance football and five-a-side football products excelled, overall accounting for 42% of goods sold and marking a 9.0% increase in sales over the previous year. Tennis sales were stable at 17% of the total, while sales of running footwear have increased significantly to make up 10% of total sales turnover.
Moving forward, Lotto stated that a “strong focus” will continue on the Far East countries, with new licensing contacts initiated in Vietnam, Taiwan and India in 2004. The company is predicting sales of these three countries to exceed 10 million ($12.3 mm) in three years and hopes to double that figure in five years.
The second half-year, forecasts are estimated at 260 million ($319.5 mm) for total sales with a 2% increase over 2003.