Amer Sports' apparel/footwear Q2 sales up 25 percent
Amer Sports said its second-quarter net sales were on par with last year's numbers, but it still faces challenging market conditions, particularly in the United States.
Net sales were EUR 284.7 million (USD $410.0 million) compared to last year's EUR 285.1 million (USD $410.6 million). In local currencies, net sales decreased by 6 percent.
The group's EBIT was a loss of EUR 29.4 million (USD $42.3 million) versus a loss of EUR 7.8 (USD $11.2 million) last year. The company said the weakened result reflects more challenging market conditions, particularly in the United States. Last year's result includes a capital gain of EUR 13 million (USD $18.7 million) from selling the company's corporate headquarters building.
Earnings before taxes were a loss of EUR 30.9 million (USD $44.5 million) compared to last year's loss of EUR 15.2 million (USD $21.8 million). Earnings per share were a loss of EUR 0.34 (USD $0.48) versus a loss of EUR 0.16 (USD $0.23). Net financial expenses amounted to EUR 1.5 million (USD $2.1 million) compared to EUR 7.4 million last year (USD $10.6 million), and they included EUR 3.9 million (USD $5.6 million) unrealized foreign exchange gains.
"Market conditions in the sporting goods industry during the second quarter remained as difficult as during the start of the year. The U.S. market continued to suffer more than the European market and in general, there is less demand for high-ticket items. This was evident in both our fitness and golf businesses that saw the largest sales decline within Amer Sports," said Roger Talermo, Amer Sports' president and CEO, in a statement.
"Then again, the demand for low-ticket items has remained healthy," he added. "We managed to improve our strong growth rate during the second quarter in our apparel and footwear business. Our pre-orders in winter sports equipment for the next season are at last year's level thanks to market share gains in Europe."
In the company's winter and outdoor business segment, total net sales were up 2 percent -- flat in local currency terms -- to EUR 106.6 million (USD $153.5 million) versus EUR 104.6 million (USD $150.6 million) last year.
EBIT was a loss of EUR 29.2 million (USD $42.0 million) compared to EUR 26.7 million (USD $38.4 million) the year before.
By category, sales were:
>> Winter sports equipment: EUR 11.4 million (USD $16.4 million), down 31 percent from EUR 16.6 million (USD $23.9 million)
>> Apparel and footwear: EUR 49.2 million (USD $70.8 million), up 25 percent from EUR 39.4 million (USD $56.7 million)
>> Cycling: EUR 24.6 million (USD $35.4 million), down 5 percent from EUR 26.0 million (USD $37.4 million)
>> Sports instruments: EUR 21.4 million (USD $30.8 million), down 5 percent from EUR 22.6 million (USD $32.5 million)
For the segment, Amer Sports said the second quarter is dominated by the apparel and footwear business, with growth being driven particularly by Salomon. The order book for the fall/winter season is now closed and indicated a slower pace than in the first half of the year. Inventory management continues to improve according to targets, the company said.
The second quarter is not material for winter sports equipment sales as all focus is on order intake for the next season, Amer Sports noted. Pre-orders for the next season are at last year's level, with strength in cross-country skiing and protectives, it said. Regionally, North America continues to underperform, while, it noted, most key European markets show healthy progress in orders. The operating expenses continue to track down as planned, it added.
Amer Sports noted that net sales of sports instruments were below last year's level, with declines particularly in the United States and in the diving category globally. The training and outdoor categories were at last year's level despite the difficult market environment, it added. It said new cost savings initiatives have been made in order to adjust Suunto's cost base to the current market conditions.
Looking forward, the company said its market outlook has not materially changed during the second quarter, and the market will remain challenging during the rest of the year.
Amer Sports said its EBIT for the full-year 2009 would be below last year's level. The expected improvement in winter sports equipment business due to previously implemented cost efficiency measures is more than offset by weakness in its other businesses, it added. The company had already announced in June that its full-year result would weaken from last year.
(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 Aug. 6.)
Crocs reports $30.3 million Q2 loss
Crocs (Nasdaq: CROX) said it swung to a second-quarter loss as charges and weak sales diminished results.
For the quarter ended June 30, the company posted a loss of $30.3 million, or a loss of $0.36 per share, compared with net income of $2.1 million, or $0.03 a share, a year earlier.
Excluding $34.8 million in impairment and restructuring charges, $16.3 million in stock-based compensation and $3.1 million in charitable donations, the company posted a loss of $5 million, or $0.06 per share.
Sales dropped 11 percent to $197.7 million from $222.8 million.
Retail sales increased 58.9 percent to $55.3 million. Internet sales increased 24.8 percent to $17.4 million. Wholesale sales decreased 28.2 percent to $125.0 million.
Looking ahead to the third quarter, the company expects to record a loss between $0.06 and $0.14 per share, excluding charges. Sales will range between $150 million and $160 million.
Liberty Media's e-commerce division Q2 revenue dips
Liberty Media Corp. (Nasdaq: LINTA, LCAPA, LMDIA) reported lower second-quarter revenue at its largest division, Liberty Interactive, which includes Backcountry.com, with the tough retail environment hurting sales.
While revenue declined at Liberty Interactive, it increased at both Liberty Entertainment and Liberty Capital.
At Liberty Interactive, revenue fell 1 percent to $1.9 billion. Liberty Entertainment said revenue rose 2 percent to $367 million. Liberty Capital reported a 14 percent increase in revenue to $199 million.
--Compiled by Wendy Geister
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