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Mavic sales up 10 percent in first half of 2014

Published July 24, 2014

HELSINKI, Finland (BRAIN) — Mavic's sales have grown 10 percent in the first half of 2014, thanks especially to strong sales in the April-June period, the brand's parent, Amer Sports, announced Thursday.

Cycling sales for Amer — all through the Mavic brand — totaled 70.1 million euros ($94 million) in the first half, up from 64.3 million euros ($86 million) in the same period last year. Mavic sales were up 12 percent in the second quarter (14 percent in local currencies), totaling 31.1 million euros ($27.7 million). Amer had reported Mavic's sales were up 8 percent in the first quarter this year.

Sales of cycling apparel, helmets and footwear increased by 5 percent in the quarter; the rest of the sales increase was in hardgoods — primarily wheels and tires.

Cycling accounted for about 8 percent of Amer's total sales, but Amer's Winter and Outdoor segment, which includes cycling, accounts for about 47 percent of total sales. Amer's outdoor brands include Arc'teryx, Salomon and Atomic. The rest of Amer's sales come from Ball Sports (primarily Wilson Sporting Goods), which is 36 percent of sales and Fitness, which is 17 percent of sales.

Overall, Amer's net sales were up by 5 percent in the first half to 878 million euros ($1.18 billion).

In an interim report statement, Amer CEO Heikki Takala focused on a new strategy for the Ball Sports segment, noting that discontinuing some unprofitable Wilson products affected that segment's net sales in the quarter. Takala also announced a new phase in the company's restructuring over the next two years. The latest phase includes a new focus on profitable growth in ball sports, especially individual ball sports and resource re-allocation to support faster growth in apparel and footwear, consumer direct sales and digital products and services. The restructuring also will include "decreasing complexity and duplication in business areas, regions, functions, sites and platforms."

Amer Sports is traded on NASDAQ's Helsinki exchange under the AMEAS symbol. Its stock performance is tracked on BRAIN's Industry Stocks page.

Topics associated with this article: Earnings/Financial Reports

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