Exel Sports finished 2005 with a slower fourth quarter than anticipated, while investments in emerging Nordic Walking markets are still waiting on a return. Total company net sales for the fourth quarter increased 10.6% to 21.9 million ($26.1 mm). The sport division saw sales decrease 14.8% to 6.9 million ($8.2 mm) versus 8.1 million ($10.5 mm) last year. Operating profit in the sport division declined sharply to 1.6 million ($2.6 mm), compared to 5.9 million ($4.3 mm) last year.
The company claims that Nordic Walking is continuing its strong growth curve in central Europe, with market expansion in the strong double-digits. With approximately 6 million people who actively practice Nordic Walking, Exel claims that around half of these use Exel poles.
Exels efforts in North America are showing some signs of a return on investment. Exel is seeking increased market shares in the traditional pole markets, as well as a boost for launching and establishing the Nordic Walking concept in North America. The emphasis of the U.S. unit's operations in 2005 has been on establishing a distribution and sales organization and training sales staff. As a result of these efforts, Nordic Walking has gained a small foothold in North America and the companys market share in ski poles has increased.
