Rossignol sales have dropped 11% for the first six months of the 2003-04 season from 224.9 million ($226.1 million) to 199.9 million ($213.9 million).
On a currency neutral basis, sales dropped 5.1%. Net income decreased as well, down 9.2% from 10.9 million ($10.4 million) to 9.9 million ($11.2 million).
North American sales make up 46.8% of Rossignols total sales, or 93.6 million. When measured in Euros, NA sales dropped 19%, but in local currency, they only dropped 3.7% from $109.9 million to $105.9 million.
This decrease can most likely be explained by the increase in final retail sales price caused by exchange rates. The Euro is worth 16% more this year than last.
The company did say that this lag in sales in the NA market has been partially made up since the end of the half. With the favorable skiing conditions, Rossignol expects to see sales pick up going into the second half.
Conversely, sales in Rossignols core European market The Alps and Spain increased 5.9% from 47.6 million ($ 45.3 million) to 50.4 million ($57.0 million). The company said that early snow cover, particularly in Europe, supports their expectation of a good sales outcome in winter sports as well as in sports clothing.
Results for Rossignols Tennis and Skate division could not be explained by currency fluctuation. Sales were down 63.6% from 1.1 million to 400,000.
Rossignol also stated that order bookings for both winter and summer goods are in line with their expectations. No additional guidance was offered for H2.
