Rossignols fiscal second quarter and first half showed a marked improvement, but requests to delay shipments and exchange rates again pulled sales down. 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. Second quarter group sales increased 0.8% in the companys reporting currency to 162.1 million.
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.
Currency neutral sales climbed 3.2%. The largest shortfall in sales came from the Asian region, where a re-organization in the distribution arrangements for the brand caused a 47.4% decline in sales from 26.3 million ($29.8 mm) in 2003 to 13.9 million ($16.8 mm) this year. Sales are expected to be recover in H2.
All other geographic regions showed increased sales for the first half. North America posted currency neutral sales growth of 11.9% which only amounted to a 4.8% increase in Euros, from 93.6 million ($105.8 mm) to 98.0 million ($119.0 mm), North America now makes up a larger piece of Rossignols overall business with 49.2% of sales compared to 46.8% last year. Consolidated group sales in Europe increased by 3.2%, while the other regions posted a 19.0% gain.
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. In the companys interim sales report, management said that the winter sports order books are “in line with our forecasts” for the Asian and North American regions, while France was exceeding plans and Germany was softer than expected.
Skate and tennis are clearly not Rossignols forté, with the company posting negative 584,000 ($709,000) in sales for the first half, compared to 443,000 ($501,000) last year.
Golf was by far the strongest category for the group, with 27.8% currency neutral sales growth, and a 19.6% increase in the reporting currency, from 52.8 million ($59.7 mm) to 63.1 million ($76.7 mm).
Rossignol said that orders to date confirm that they will meet their double-digit sales growth objective. Increased sales of putters from the Never Compromise acquisition were said to be a key contributor.