Rossignol S.A. reported a strong fourth quarter in its Golf and Apparel divisions, but this was offset by continued weakness in SnowSports sales. Total Group sales for the fourth quarter inched up 0.7% to 83.2 million ($109.2 mm) compared to 82.6 million ($103.2 mm) last year.
Sales at Cleveland Golf led the way during the quarter with a 38.2% sales increase to post 35.1 million ($45.8 mm) in sales. However, the Wintersports division experienced some difficult spring selling conditions and sales fell 30.1% during the quarter to 35.3 million ($46.3 mm) compared to 50.5 million ($63.1 mm) last year. Clothing and Accessories is reporting solid growth, a fact that is sure to make management at soon-to-be-parent Quiksilver take notice, with a 19.2% sales increase from 2.6 million to 3.1 million.
Regionally, Asia bounced back in the fourth quarter with a 406.7% increase in sales. Rossignols restructuring of the division into a direct sales platform, rather than through a distributor seems to be making some headway. European sales remained relatively flat throughout the quarter while North America posted a slight decline due to exchange rate fluctuations. Translated into U.S. dollars, N.A. sales actually increased 6.3% to $45.9 million.
For the full year, The Rossignol Group reported essentially flat consolidated sales. Excluding the negative exchange rate fluctuations, sales would have risen by 2.4% for the year. Rossi posted a consolidated net loss of 22.8 million ($28.7 mm) versus a net profit of 9.3 million ($10.9 mm) in the prior year.
The Winter Sports Equipment segment reported a drop in sales of 4.1% at constant exchange rates. Rossignol stated in a release that the company “retained its position as world leader for the 2004/2005 season,” in this category with a market share estimated at 23%. The decline in SnowSports sales was said to be caused by downturns in the snowboard business, which was down 18.6% and in the alpine boot business, which was down 12.2%. Rossignol saw some success in the Nordic Skiing category, with sales increasing 12.8% on a constant currency basis.
The Group continues to rebalance the seasonality of its business with sales from the Cleveland Golf business growing to 25.4% of the total. The Winter Sports business contributed 66.9% of total sales, while apparel represented the remaining 7.6% of sales for the year.
Exchange rate fluctuations and, to a lesser extent, provisions for risks, inventory write-downs, and the downturn in the snowboard business all contributed to a 61.2% decline in operating income. A restructuring charge of 11.4 million and a tax charge, which totaled 10.0 million and includes a one time charge of 3.6 million, contributed to Rossignols 22.8 million net loss.
| Skis Rossignol | |||
| Fiscal 2005 Full Year Results | |||
| (in $ millions) | 2005 | 2004 | Change |
| Revenues | $598.6 | $560.6 | -0.3% |
| Winter Sports | $400.5 | $395.6 | -5.4% |
| Apparel/Access. | $45.8 | $39.2 | +9.0% |
| Golf | $152.0 | $120.2 | +18.2% |
| Other | $0.3 | $5.6 | -95.8% |
| Europe | $232.0 | $215.9 | +0.4% |
| N. America | $227.5 | $221.0 | -3.9% |
| Asia | $45.6 | $43.3 | -1.6% |
| Net Income | ($28.6) | $10.9 | vs. profit |
