21 Oct Amer Sports Reports Challenging Conditions In U.S.
Amer Sports Corp., which owns Arc’teryx, Salomon, Wilson, Louisville Slugger, Precor and five other sporting goods brands, reported net sales reached €736.8 million in the third quarter ended September 30 compared with €713.7 million in the third quarters of 2015.
In local currencies, net sales increased by 4 percent. Organic growth was 4 percent. Growth was solid in EMEA and China, while the U.S. market continued to be challenging.
Among its operating segments, Outdoor sales in the quarter grew 6.1 percent to €505.7 million and grew 6 percent on a currency-neutral basis. In Ball Sports, sales were down 0.5 percent to €147 million and were flat on a currency-neutral basis. Fitness sales were down 5.8 percent to €84.1 million and were off 4 percent on a currency-neutral basis.
By geography, sales in the EMEA region were up 4.8 percent to €334.7 million and gained 7 percent on a currency-neutral basis. Americas sales were up 0.9 percent to €304.6 million and gained 1 percent on a currency-neutral basis. Amer said the U.S. sporting goods market “was adversely impacted by the retail bankruptcies earlier in the year.”
In the Asia Pacific region, sales were up 5.5 percent to €97.5 million and were up 3 percent on a currency-neutral basis.
Other highlights for the period and comparable 2015 period include:
- Gross margin 48 percent (47 percent).
- EBIT excluding items affecting comparability (IAC) €106.5 million (€103.5). Items affecting comparability were -€2.4 million.
- Earnings per share excluding IAC €0.62 (€0.59). Earnings per share were €0.60 (€0.59).
- Free cash flow -€66.9 million (-€92.2).
- Outlook for 2016 unchanged.
Nine month results
The results bring net sales for the first three quarters of 2016 to €1.85 billion compared with €1.75 billion a year earlier. In local currencies, net sales increased by 7 percent. Organic growth was 6 percent.
Other highlights for the nine months include:
- Gross margin 46.9 percent (45.9 percent).
- EBIT excluding items affecting comparability €140.4 million (€128.1). Items affecting comparability were -€8.7 million (-€8.0 million).
- Earnings per share excl. IAC €0.73 (€0.63). Earnings per share were €0.67 (€0.58).
- Free cash flow -€88.4 million (-€37.7).
Outlook
In 2016, Amer Sports net sales in local currencies are expected to increase and EBIT margin excluding items affecting comparability to improve from 2015, despite challenging market conditions. The company will focus on growing the core business and accelerating in five prioritized areas: Apparel and Footwear, U.S., China and Business to Consumer as well as digitally connected devices and services.
Amer’s brands include Salomon, Wilson, Atomic, Arc’teryx, Mavic, Suunto, Precor, DeMarini, Louisville Slugger and Enve Composites.