Groupe Rossignol finished the first nine months of its fiscal year with sales on the negative side of flat, with a 0.5% decline to 394.2 million ($498.6 mm) compared to 396.0 million ($456.0 mm) last year. On a currency neutral basis, this translated to a 2.2% increase in sales. Average U.S. dollar to Euro exchange rates fluctuated roughly 7.9% year-on-year.
The majority of Rossignols sales shortfall again came from its struggling Asian division. The company recently pulled the plug on it distribution arrangements and launched a wholly owned subsidiary to have more brand control in the region. The subsidiary is clearly still in its transition phase, posting an 18.9% decline in sales for the nine month period to 28.8 million ($35.8 mm) compared to 35.5 million ($40.9 mm) last year.
Apart from its troubles in Asia, Rossignols snowboard division pulled down the performance of its Winter Sports group due to poor sales in Europe. Snowboard sales dropped 19.7% during the nine-month YTD period to 24.0 million ($29.8 mm). Winter Sports sales fell 4.2% to 275.0 million ($341.6 mm) compared to 287.2 million ($330.7 mm) last year, with Alpine sales falling 3.3% to 236.9 million ($294.2 mm) and Nordic sales jumping 13.7% to 14.1 million ($17.5 mm).
Geographically, Rossi is clearly more balanced than it once was. Last year Europe was over 50% of total sales and this year, sales are roughly balanced between Europe and North America. Rossignol is making strong headway in international expansion, gaining 10 million in sales in its other countries category YTD, jumping 17.3% to 63.0 million ($78.2 mm).
Losing Bode Miller to Atomic may be impacting North American sales, which dropped 5.0% to 146.4 million ($181.8 mm). Rossignols Q3 sales slowed further. In U.S. dollar terms, N.A. sales dropped 12.9% in Q3.
>>> Millers comments to the press about the performance of his equipment this year versus last cant be helping things either…