Amer posts Q1 figures
Strong Euro hits sales and profits
Amer Sports, which owns the Salomon, Wilson, Atomic, Arc’teryx, Mavic, Suunto and Precor brands, has released its first quarter financials, showing a dip in net sales and profits.
The headline figures for the three months to the end of March showed:
EBIT increased to €40.4 million (January-March 2017: €35.5, excluding items affecting comparability, IAC). EBIT margin was 6.5% (5.3 excl. IAC).
Net sales in local currencies increased by 1% to €623.8 million (€664.2). Translation impact was significant due to the strengthening of the Euro.
Gross margin was 46.8% (44.7%), driven by improvement in channel mix and higher share of full-price sales.
Earnings per share were €0.21 (€0.19 excl. IAC).
Free cash flow after investing activities was €22.7 million (€53.9).
Outlook for 2018 unchanged.
Net sales in local currencies as well as EBIT excluding IAC are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven. The company will prioritise sustainable, profitable growth, focusing on its five strategic priorities (Apparel and Footwear, Direct to Consumer, China, US, and Connected Devices and Services) whilst continuing its consumer-led transformation.
CEO Heikki Takala, said: “In the first quarter, we delivered solid progress across our strategic transformation areas with on-going acceleration in Direct to Consumer, modern sales channels, and China. Following a year of significant transformation and restructuring, our focus in the quarter was on solidifying our margins through more attractive mix, higher quality distribution through sharper segmentation and reduced number of doors, and reduction of promotional sales especially in Footwear. As result, our margins and profit improved, and we can now focus on driving a more sustainable topline with a good pipeline of initiatives.
“The market continues to evolve rapidly, and we are embracing the changes proactively and with encouraging results. Whilst we make good progress and continue to accelerate in most areas, we also have more work to do to address the remaining areas of underperformance. As always, we maintain a long-term view guided by our sustainable growth model.”