Movement Skis eked out sales of a few hundred thousand Swiss francs in the first half ended June 30 as the usual seasonality of its ski business was impacted further by a lack of snow and higher temperatures in early 2023, weaker consumer sentiment, and the war in Ukraine.
These factors prompted Movement Skis to look hard at its operating expenses, which it significantly reduced compared with HY1 2022—personnel costs were cut by 16 percent, advertising costs by 10 percent, research and development costs by 25 percent, and administrative and general expenses by 19 percent.
The company closed its factory to optimize ski production.
Movement Skis, acquired by Airesis Group in June 2015, owns its production equipment and, therefore, creative flexibility. At the same time, the company said it is making every effort to return to the market faster and stronger for the 2023/24 season.
A reorganization of the company’s sales and administrative teams is operational, and it reviewed its marketing strategy. The company said launching a new website for DTC orders is part of the dynamic, with the possibility of delivering in Switzerland and Europe.
Despite the weaker first-half results, the freeride ski brand expects the second half to be the dominant period.
First-half sales came in at approximately CHF316,000 ($347k), compared to approximately CHF687,000 in the year-ago first half.
Gross profit was only CHF2,000 ($2.2k) for the period. The EBIT loss
Operating expenses in the first half declined due to the efforts above, coming in at CHF1.86 million ($2.0 mm) compared to CHF2.21 million in H1 last year. Still, the EBIT loss expanded due to the sales shortfall and nearly non-existent margins, reaching CHF2.22 million ($2.4 mm) in H1, compared to CHF1.42 million in the prior-year period. The net loss was CHF2.43 million ($2.7 mm) in the first half, compared to a net loss of CHF1.75 million in the 2022 first half.
Movement Skis was founded in the Swiss Alps at the end of the 1990s. Its primary market is Switzerland, although it is represented in around twenty countries. The brand has a unique and strong identity with a good reputation among professional skiers, especially in freeride and freeride touring.
The first half results were published in the Airesis holding company’s interim report.
Photo courtesy Movement Skis