The market situation proved difficult due to weather conditions. Nevertheless, results posted by the group reflect both its control over the main difficulties and action plans implemented for future growth.
With total sales up 3.1%, including increases in international sales of 8.1 %, current operating income dropped 2.9 % and after-tax net income was down 32.4 %.
The year in review highlights the following: - Decreases were posted mainly by Lafuma and Millet; sales for the 2 brands were hit hardest by unfavorable weather conditions and by delivery delays; the combined impact was estimated at €4m in sales.
Lafuma slightly improved its operating profits, at – 2.5 % versus – 2.7 %. Millet posted operating profits of + 7.7 % compared to + 10.6 % in 2006 in spite of a difficult market context. Also note Lafuma included a restructuring provision of €0.9m.
- The turnaround in sales for Le Chameau (+ 11.5 %) and in operating margins (5% versus 1.6 %), and the steady growth of Oxbow sales (+ 9.8 %) and profits (11.1 % versus 12.6 %) in comparison to its investments.
- Our 8 new store openings over the second half of the fiscal year had a negative impact of about €600k on operating profits between launching and investment expenses.
- Our international business was impacted by operating expenses, up €650k, a large portion of which can be considered as investments for the future of the group.
This can be viewed in the light of growth posted in export sales of 8.1% with particularly encouraging financial results, e.g. our Chinese subsidiary broke even in only its 2nd FY of existence and our English subsidiary experienced 17% growth in net profits.
Outlook: Although we are prudent in this fiscal year start, we noted both growth in our order book and pressure on our margins. This has led us to implement a restructuring plan for Lafuma and firmer control over expenses in all of the divisions.
These measures are aimed at forging improvements in our fundamentals while at the same time staying the course with investment levels needed to reach development objectives.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
