Amer Sports offsets Q1 winter equipment drop with big boost from apparel, footwear

Amer Sports’ Winter and Outdoor segment (including Salomon, Arcteryx and Atomic) proved to be diversified enough to survive the weak finish to winter with a 10 percent gain in sales for the group in the first quarter 2012. Apparel and footwear gains made up for winter equipment losses.
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Amer Sports’ Winter and Outdoor segment proved to be diversified enough to survive the weak finish to winter with a 10 percent gain in sales for the group in the first quarter 2012.

The Finland-based parent company of Salomon, Arc’teryx and Atomic reported EUR 256.5 million ($340.1 million) in revenue for its Winter and Outdoor group, benefiting from higher apparel, footwear and cycling sales, which offset a decline in its winter equipment business. Apparel sales jumped 32 percent to EUR 51.2 million ($67.9 million), footwear sales rose 14 percent to EUR 104.1 million ($138 million) and cycling sales increased 6 percent to EUR 36.3 million ($48.1 million) versus a 7 percent decline in winter equipment sales to EUR 43.7 million ($57.9 million).

Footwear saw its biggest gains in trail running and outdoor segments, while apparel gains came across the board, officials said. Cycling saw its biggest gains in helmets and apparel.

The better-than-expected performance for Winter and Outdoor helped Amer’s overall first-quarter 2012 revenue and profit increase 9 percent each to EUR 489.8 ($649.4 million) and EUR 18.7 million ($24.8 million), respectively. The company saw a 5 percent rise from its fitness segment and a 9 percent rise from its ball sports segment.

Looking ahead Amer Sports officials said they expects broad-based improvement across business areas in 2012, expect for winter equipment products.

“In winter sports equipment, the slow start of the 2011/12 season due to the warm weather in key markets is expected to have an adverse impact on the 2012 pre-orders,” officials said. “Apparel and footwear pre-orders for spring/summer are up by 28 and 14 percent, respectively. Overall, Amer Sports' 2012 net sales in local currencies are expected to increase from 2011.”

--David Clucas

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