Last month, SEWs sister publication The B.O.S.S. Report reported that The Rossignol Groups first half sales showed a marked improvement, but requests to delay shipments and exchange rates again pulled sales down.
Consolidated group sales for the first half-year showed a slight 0.4% drop to 199.1 million ($241.8 mm) compared to 199.9 million ($226.1 mm) last year, while currency-neutral sales climbed 3.2% to 206.3 million ($250.5 mm).
More recently, Rossignol sent BOSS their first half sales and profitability numbers, showing that the exchange rate and the Asian restructuring measures are having quite an impact on the bottom line. Operating profit fell 34.5% to 9.5 million ($11.5 mm) compared to 14.5 million ($16.4 mm) last year. The Groups share of net profit fell 69.6% to 3.0 million ($3.6 mm) versus 9.9 million ($11.2 mm) a year ago. Group EPS was 0.24 (29 cents) compared to 0.80 (90 cents) last year.
Winter activity sales declined 5.7% on a currency neutral basis and decreased 7.7% in Euros, from 135.6 million ($153.3 mm) in 2003 to 125.0 million ($151.8 mm) this year. The decline in sales was caused primarily by retailers requesting third quarter deliveries; a trend which management said was “more marked than in previous seasons.” This brought group inventories (production stored/accounted as fixed asset) up 45.2% versus last year at the same time.
The delayed shipments are having a “positive effect” on second half sales, and the company is maintaining its guidance for 5% currency-neutral sales growth for the full-year.