Mavic Results Hit by High OEM and Retail Inventory Levels
ANNECY, France – P&A maker Mavic had, like last year, a difficult start to 2017. According to statements on its financial results in the 1st half-year of 2017 ‘mother’ Amer Sports notes that Mavic sales were impacted by high OEM and retail inventories.
What stood out at the cycling segment results of outdoor and sporting goods maker Amer Sports was how ENVE Composites LLC grew in the first half of this year. Amer Sports acquired this US based maker of high-end carbon wheels, components, and accessories for road and mountain biking in March 2016. ENVE has annual sales of some USD 30 million.
Global distribution expansion
Amer Sports bought ENVE for about USD 50 million not only to ramp up the company’s cycling business in the United States but also as it offers further expansion opportunities internationally. These opportunities were used in the first half of 2017 as ENVE grew by 26% “mainly due to global distribution expansion”, says Amer Sports in its financial statement.
Mavic’s business results
The big double digit growth of ENVE came to the rescue of the total cycling segment result of Amer Sports. In particular as Mavic sales were down hard not only due to inventory levels but also due to “H2 biased product launches versus H1 biased in 2016”, says Amer Sports. The holding also indicates that “the Mavic business is expected to stabilize in H2”.
Amer Sports’ total sales in cycling P&A during the first half of 2017 stood at €69.1 million; down 12% on the €77.7 million of the first half of 2016.
Transformation toward omni-channel
Amer Sports total net sales (including Outdoor, Ball Sports and Fitness products) came in at close to €1.5 billion; up by 2%. In its outlook for the 2nd half year and beyond Amer Sports says to accelerate its investment into the company’s transformation toward omni-channel and digital “to win in the fast changing market place.” Amer Sports will continue to focus on growing its core business in five prioritized areas: Apparel and Footwear, US, China, Business to Consumer, as well as digitally connected devices and services.