Amer Sports’ cycling trade dipped by 18% in the company’s second quarter and saw a 12% revenue decrease over the same period last year.
According to the group’s statement, Mavic sales were impacted by high OEM and retail inventories, together with H2 biased product launches versus H1 biased in 2016. At the same time, ENVE grew by 26% mainly due to global distribution expansion. The Mavic business is expected to stabilize in H2.
Totaling €69.1 million or $80.6 million in the first half, the cycling division tallied €77.1 million in the same period last year. Sales for the second quarter declined from €38 million last year to €31.4 million in 2017.
Cycling’s slow performance didn’t impact the company as a whole too heavily which recorded a 3% rise in first half revenues to €1,148.9 million.
The biggest gains came from area in which Amer has invested and prioritised in recent times, most notably consumer-direct retail, its clothing arm and in the Chinese market.
The statement added on the future: “Short-term risks for Amer Sports are particularly associated with general economic conditions, changes in the wholesale channel, consumer demand development, the ability to compete successfully against existing or new competitors and the ability to identify and respond to constantly shifting trends, to leverage technology advancements and to develop new and appealing products.”
At the end of June, the number of Group employees was 8,680 (June 30, 2016: 8,514).
You can catch the full statement here.