Swiss Intersport continues to struggle with the euro

In the first half of its financial year 2014-15, which ended March 31, Swiss Intersport saw its sales dwindling by 16.7 percent to 112.5 million Swiss francs (€107.1 million). Profit, in return was up by CHF 0.5 million (€0.47) to CHF 2.3 million (€2.2 million). Earnings before interests and taxes (Ebit) improved to CHF 2.2 million (€2.1 million), up from 1.8 million (€1.7 million). According to the group, the better results came mainly from more efficiency as far as expenses are concerned.

One explanation for these results supplied by the buying group was the Swiss National Bank’s decision to abolish the fixed exchange rate at CHF 1.2 to the euro in January this year. Intersport said that the, subsequent, increased value of the Swiss franc compared with the euro continues to put pressure on Swiss retail and its margins.

During the first six months, the number of affiliated retailers decreased by 11 to 179 compared with the previous year’s period, excluding additional buying partners whose number fell by five to 42. The group counted 307 doors, compared with 341 one year before. Additionally, Intersport’s headquarters runs four outlets itself to sell their own and their members’ stock excesses.

The outlook for the full financial year looks, however, bleak. Intersport expects for the second half sales of CHF 54.2 million (€51.6 million), down from CHF 112.5 million (€107.1 million).

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