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Amer Sports’ interim report for January-September 2018

Amer Sports has released an interim report for its performance during January-September 2018. The company notes that during the period net sales were up 8.5% to €757.2 million (versus €697.9 million in July-September 2017).

Amer Sports’ portfolio of brands includes Salomon, Arc’teryx, Peak Performance, Atomic, Mavic, ENVE, Suunto, Wilson and Precor.

In its interim report, Amer Sports made no mention about the status of its discussions with a consortium of Asian private equity investors seeking to acquire the company.

Back in September, having confirmed it was considering the sale of its Mavic and ENVE cycling operation, Amer Sports received an indication of interest from a consortium including Chinese sportswear company ANTA Sports Products.

For the January-September 2018 period, in local currencies, net sales reportedly increased by 9%. Organic growth was 3%. The company’s EBIT (earnings before interest and tax), excluding items affecting comparability, was €116.9 million (vs €103.8 million in the previous ear period).

In 2018, Amer Sports’ net sales in local currencies as well as EBIT excluding items affecting comparability are expected to increase from 2017. The company notes that ‘Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven.’

The company adds that it will prioritize sustainable, profitable growth, focusing on its five strategic priorities (Apparel and Footwear, Direct to Consumer, China, US, and Connected Devices and Services) whilst continuing its consumer-led transformation.

Heikki Takala, President and CEO said “We delivered a solid quarter in line with our expectations, and we made broad-based progress across the portfolio with on-going acceleration in Winter Sports Equipment, Sports Instruments, and Ball Sports, whilst we also continued to pursue the distribution renewal in Footwear with adverse short-term impact but longer term improvement already in sight.

“Our strategic focus areas are delivering, with Softgoods accelerating thanks to Arc’teryx, which will deliver another year of double digit growth, and now Peak Performance, which gives us a further boost. Direct to Consumer remains on strong growth trajectory at high double-digit growth, and building blocks are well in place for further acceleration, including significant enhancements in our mobile shopping and own retail expansion.

“Also progress in China is strong and we continue to ramp up our investment for on-going acceleration. Encouragingly, the US is now returning to a mid-single digit growth.”

He continued, “Early September, we hosted a Capital Markets Day where we reconfirmed our strategic framework and presented our portfolio considerations. Our long-term strategies are proven, and we can expect continuous profitable growth and strong value creation, boosted by the business transformation towards areas of faster growth, higher profitability, and better asset efficiency. The vast majority of our businesses and priorities are working well, whilst we also have some areas where we intervene for the long-term business health. We continue to drive our sustainable growth model.”




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