Amer Sports, the Finnish holding behind brands like Atomic, Salomon, Wilson, Suunto, Mavic and Precor lifted its sales in the first quarter of fiscal year 2014 (March 31) to €501.5 million up from €493.0 million in the previous year’s period. In local currencies, sales growth rate was 6 percent. The gross margin improved only slightly to 44.3 percent, while earnings before interests and taxes dropped substantially to €20.6 million down from €26.4 million in the first three months of 2013. Net profit dropped to €8.2 million from €14.8 million.
Winter sports managed to grow in spite of mild weather conditions in a couple of key markets which had notably their impact on the cross-country category. The racquet business declined, as expected, after Wilson had decided to clean up some non-profitable parts of its portfolio. Ebit was impacted partly due to a challenging environment in Russia due to lower consumer demand and the devaluation of the ruble. Total net sales figures in local currencies are in line with Amer’s long-term plan to improve by 5 percent annually.