Outdoor financial: Amer Sports’ Q4, FY ’10 sales driven by winter/outdoor segment

Boosted by a better economic environment and favorable snow, Amer Sports -- parent of Salomon, Arc’teryx, Suunto and Atomic -- posted a 21 percent bump in fourth-quarter sales.
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Boosted by a better economic environment and favorable snow, Amer Sports -- parent of Salomon, Arc’teryx, Suunto and Atomic -- posted a 21 percent bump in fourth-quarter sales.

“We drove footwear sales up by 26 percent through strong commercial expansion, we now have 25 percent more brand stores and outlets than in 2009,” said Heikki Takala, Amer Sport’s president and CEO, in a statement, “and in winter sports equipment, we continued to push down break-even points through operational effectiveness.”

For the company as a whole, net sales increased by 21 percent in the fourth quarter to EUR 583.4 million (USD $806.2 million) compared to EUR 482.8 million (USD $667.2 million) in the same period last year. In local currencies, net sales increased by 14 percent. 

EBIT excluding non-recurring items rose to EUR 56.0 million (USD $77.3 million) versus EUR 44.4 million (USD $61.3 million) last year, and included a EUR 4 million (USD $5.5 million) acceleration in marketing spending. Non-recurring items were a loss of EUR 7.6 million (USD $10.5 million) versus a loss of EUR 5.0 million (USD $6.9 million) last year. 

Earnings per share dropped to EUR 0.30 (USD $0.41) as compared to EUR 0.37 (USD $0.51).

For FY 2010, Amer Sports’ net sales totaled EUR 1.74 billion (USD $2.40 billion), an increase of 13 percent over 2009’s EUR 1.53 billion (USD $2.11 billion). In local currencies, net sales increased by 8 percent.

EBIT excluding non-recurring items more than doubled to EUR 107.9 million (USD $149.1 million) versus EUR 48.8 million (USD $67.4 million) last year. EBIT margin was 6.2 percent excluding non-recurring items. Non-recurring items were a loss of EUR 11.1 million (USD $15.3 million) compared to a loss of EUR 5.0 million (USD $6.9 million) last year. 

Earnings per share totaled EUR 0.52 (USD $0.71) versus EUR 0.28 (USD $0.38). Excluding non-recurring items, Amer reported earnings per share were EUR 0.59 (USD $0.81) compared to EUR 0.31 (USD $0.42).

For the fourth quarter, the winter and outdoor segment's net sales totaled EUR 416.5 million (USD $575.6 million) versus EUR 329.2 million (USD $454.9 million), an increase of 21 percent in local currencies. The company said growth was driven by winter sports equipment, EUR 252.8 million (USD $349.3 million); footwear, EUR 47.3 million (USD $65.3 million); and apparel, EUR 63.0 million (USD $87.0 million).

EBIT excluding non-recurring items increased by 44 percent to EUR 61.2 million (USD $84.5 million) compared to EUR 42.5 million (USD $58.7 million) last year. Increased sales volumes contributed EUR 29.1 million (USD $40.2 million) and higher gross margins EUR 4.9 million (USD $6.7 million) to the EBIT growth, Amer said.

For 2010, net sales for the winter and outdoor segment were EUR 1.01 billion (USD $1.39 billion) compared to EUR 862.6 million (USD $1.19 billion) in 2009, an increase of 12 percent in local currencies. The company said net sales growth was driven by winter sports equipment, EUR 438.4 million (USD $605.8 million), and footwear, EUR 219.6 million (USD $303.4 million).

EBIT excluding non-recurring items more than doubled and was EUR 96.9 million (USD $133.9 million) versus EUR 46.5 million (USD $64.2 million). Amer said increased sales volumes contributed EUR 46.3 million (USD $63.9 million) to the EBIT growth, while higher gross margins contributed EUR 29.5 million (USD $40.7 million).

Amer Sports said its strategic development programs across the company are expected to continue to contribute positively to the group performance in 2011. In footwear and apparel, spring/summer pre-orders are indicating that the 2010 strong momentum will continue.

“Year 2010 was good, and it is taking us closer to our long-term financial targets” said Takala in a statement. “2011 will be ‘year of go-to-market,’ with special focus on improving customer service and driving commercial expansion.”

(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Feb. 3.)

--Compiled by Wendy Geister

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