Amer Sports grew sales 7 percent in currency-neutral (c-n) terms and held margins in the quarter ended Sep. 30, despite a shift in peak Winter Sport deliveries into the fourth quarter that caused it to burn through more cash.
company, which owns the Salomon, Wilson, Atomic, Arc’teryx, Mavic,
Suunto and Precor brands, reported sales reached €608.9 million ($807
mm), up 1 percent in adjusted currency terms terms compared with the
third quarter of 2012. Gross margin slipped 30 basis poins to 45.0
percent. Earnings before income taxes reached €82.5 million ($109 mm),
or 13.5 of sales, which was flat with a year earlier.
Net cash flow
after investing activities was a negative €119.3 million ($158 mm),
compared with a negative €78.1 million in 2012.
For the nine
months ended Sept. 30, Amer Sports reported net sales were €1.48 billion
($2.0 bn), up 6 percent from the comparable period in 2012. Gross
margin was 44.3 percent, up 10 basis points while EBIT reached €90.2
million ($119 mm), down from €91.7 in the nine months ended Sept. 30,
2012. Net cash flow after investing activities was a negative €101.4
million compared with a negative €24.9 million.
Debt increased to 79 percent of assets from 73 percent at the ended of the third quarter in 2012.
our performance improvement in Q3 and delivered strong broad based
growth, despite the challenging trading conditions and significant
currency fluctuations,” said Heikki Takala, president and CEO. ”Our
topline momentum was logically driven by solid double-digit growth in
our strategic focus areas Apparel and Footwear, Emerging Markets, and
Business to Consumers. The good momentum continued also in Suunto and
Fitness which both grew at double-digit rate. Importantly, we also saw
first signs of rebound in Team Sports behind a normalization of the
baseball market inventory situation. In Winter Sports Equipment our
delivery peak is later than last year, hence the slight decline in Q3.
I’m overall pleased with our business progress. We stay the course and
continue executing with confidence.”
said it expects the trading environment to remain challenging for the
balance of the year. Net sales growth in local currencies is expected to
meet at minimum the company’s long-term annual 5 percent growth target,
while EBIT margin – excluding non-recurring items – is expected to
improve from 2012. The company will continue to focus on softgoods
growth, consumer-driven product and marketing innovation, commercial
expansion and operational excellence.
By press release
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