Rossignol expects to be profitable in the fiscal year ending in March thanks to cost cutting and good snow, its CEO Bruno Cercley told news wires.
In the fiscal year ended March 31, 2009, Rossignol lost $63 million on revenue of $354 million. Cercley said he expects the company to be EBITDA positive through March 2010 despite a 15% drop in revenue to €207 million ($300.9 mm). Cercley said the growing popularity of ski rentals was exacerbating a longer term decline in participation.
This year Rossignol cut 30% of its staff, cut pay to its 200 sponsored racers by half and cut senior manager' salaries by 20%. The company has also halved its SKUs. Like many outdoor brands, Cercley said it has focused on profits over sales.
Cercley granted the interview at the grand opening of Rossignol's new headquarters in Saint Jean de Moirans near Grenoble.
