News Flash

Mild winter weather weighs in on growth & profits – Lafuma

25 Oct '07

2 min read

The group posted year-on-year increases of 2.7%. This performance came in below objectives, but can be partly attributed to the impact of unfavorable weather conditions.

The following 7 aspects of fiscal 2006/2007 were noteworthy:
- A difficult year-end for Lafuma with a decrease in sales of 2.3%. Expected growth in camping furniture was bridled by both a slowdown in 4th quarter sales due to unfavorable weather conditions, as well as year-end hold-ups on deliveries impacting both Lafuma and Millet.
- Business for Millet was up 1 %. Mild winter weather weighed in on growth and profits.
- Le Chameau posted excellent growth (+11.6%), a turnaround driven by international sales (+23.3%), higher-end positioning of product lines and also by the summer rains!
- Performance for Oxbow (+9%) was driven by surfing fashion trends, the success of its brand stores and export growth (+13%).
- Increases in international business (+7.5%) were mainly driven by sales in Central Europe (+25%) and in Asia; more specifically, the JV in China reached its objectives only 2 years after its creation.
- Increases were also posted for licensing activities: not only for Oxbow products but also for international Lafuma and Millet brand sales. This growth has reinforced the economic strength of our brands with sales volumes at roughly €48 million over 2007 (+40%).
- A continued focus on direct distribution investments with the opening of flagship stores in Biarritz and Bordeaux for Oxbow, as well as in Paris for Lafuma; and the successful launch of our 2 e-business sites in France.

Though earnings for 2007 will be impacted by sales that came in below our objectives, as well as by provisions for restructuring, FY 2008 has already begun with comparatively high growth in sales.

Lafuma Group

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