Amer Sports net sales up in first quarter, beats expectations
Sporting goods company Amer Sports reported on Thursday a net sales increase of 1 percent reaching $623.8 million euros, for the first quarter ended March 31.
The group’s outdoor segment performed the best with sales reaching $381.2 million
euros, followed by the ball sports segment, reaching $164.2 million euros in net sales and its fitness segment hitting $78.4 million euros.
Regionally, sales in the quarter were led by the Asia Pacific market with a 9 percent gain in net sales up at 95.9 million euros.
In the Americas, sales were down 1 percent at $244.3 million euros however, while in the EMEA region, sales were 283.6 million euros, up 1 percent.
The Finnish group, which owns brands such as Salomon, Atomic, Arc'Teryx and Wilson, has been in transformation mode in recent years, following a set 2020 strategic plan.
“Following a year of significant transformation and restructuring, our focus in the quarter was on solidifying our margins through more attractive mix, higher quality distribution through sharper segmentation and reduced number of doors, and reduction of promotional sales especially in Footwear,” explained president and CEO, Heikki Takala, in a news statement.
“As result, our margins and profit improved, and we can now focus on driving a more sustainable topline with a good pipeline of initiatives.”
Takala added, “The market continues to evolve rapidly, and we are embracing the changes proactively and with encouraging results. Whilst we make good progress and continue to accelerate in most areas, we also have more work to do to address the remaining areas of underperformance. As always, we maintain a long-term view guided by our sustainable growth model.”
Overall, the group's margins are up. Net earnings rose 40.5 percent to $24.6 million euros, up from $17.5 million euros a year ago.
For 2018, Amer Sports’ net sales are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven.
The company will prioritise sustainable, profitable growth, focusing on its five strategic priorities (apparel and footwear, direct to consumer, China, US, and connected devices and services) while continuing its consumer-led transformation.
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