Jul 31, 2018
2 minutes
Amer Sports reports modest growth in Q2
Jul 31, 2018
Sporting goods company Amer Sports reported last week a modest net sales increase of 2 percent reaching $483 million euros, despite a slightly higher loss for the second quarter.
The group’s outdoor segment performed the best with sales reaching $ 244.1 million euros. Sales in the ball sports segment and the fitness segment were down, however, dropping 6 and 5 percent respectively to $159 million euros and $79.9 million euros.
Regionally, sales in the quarter were led by the Asia Pacific market with a 5 percent gain in net sales up at $82.5 million euros.
In the Americas, sales were down 6 percent at $229 million euros however, while in the EMEA region, sales were $171.5 million euros, down 1 percent.
The Finnish group, which owns brands such as Salomon, Atomic, Arc'Teryx and Wilson, has been in transformation mode in recent years, following a set 2020 strategic plan.
“For H2 2018, our initiative pipeline is robust, and we expect strong growth in Arc’teryx, Winter Sports Equipment, Sports Instruments, and Fitness, which is boosted by the largest ever customer deal we just won for two years,” said president and CEO, Heikki Takala, in a news statement.
“Our strategic focus areas continue to deliver well, driven by Arc’teryx, China, own retail, and e-commerce. Encouragingly, after two years of low growth in the US, we are now starting to rebound towards mid-single-digit growth. As always, we focus on our Sustainable Growth Model, and throughout 2018, we continue to renew our Footwear distribution footprint for better alignment with our target consumer profile and brand equity, leading to some adverse topline impact especially in EMEA.”
In the quarter, the company also closed the acquisition of Peak Performance, which is expected to further contribute to growth and profit in the second half of the year.
Looking forward, Amer Sports’ net sales are expected to increase in 2018. 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) while continuing its consumer-led transformation.
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