Amer Sports develops long-term growth strategy
Amer Sports said it has formulated a new strategic plan for long-term growth among the brands in its portfolio, including Salomon, Arc’Teryx and Suunto. The new financial targets put the focus on profitable growth and strong cash flow, it added.
The strategy defines financial, synergy and scale targets for each unit in the group portfolio. It also emphasizes faster growth in apparel and footwear, improved consumer-centric product creation and brand marketing, and stronger commercial fundamentals through sales and channel management.
Its new long-term financial targets are: delivering organic, currency-neutral annual growth of 5 percent; EBIT of at least 10 percent of net sales; annual free cash flow equal to net profit; and year-end net debt/EBITDA ratio of 3 or less.
The company said the cash flow target has been set to synchronize working capital management with targeted growth and profitability, while the net debt/EBITDA ratio has been set to optimize balance sheet structure.
Amer Sports said it is pursuing faster growth in softgoods by moving to category-based development across brands to build scale in softgoods R&D, product line management, sourcing and manufacturing.
It’s also expanding its distribution footprint in developed and emerging markets, as well as retail and e-commerce.
Crocs stands by Q3 outlook
Crocs (Nasdaq: CROX) reaffirmed its guidance for the fiscal third quarter, which ends Sept. 30.
The company continues to expect net income of $0.22 to $0.24 per share on revenue of $205 million.
On the news, shares fell as much as $0.93, or 8 percent, to $10.70 during trading on Sept. 10. It closed at $11.13. The stock has traded between $4.33 and $14.08 during the past 52 weeks.
--Compiled by Wendy Geister
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