Mavic Owner Amer Sports Accelerates Consumer Centricity Strategy
HELSINKI, Finland – Amer Sports Corporation has reduced the company’s 2020 target “to prioritise sustainable, profitable growth”. As for reasons for the shrunken target the Finnish sportswear and cycling products manufacturer points to, “the challenging wholesale market in the US.” The rapid rise of ecommerce, especially Amazon, has already caused the downfall of the number one US sports retailer in 2016, Sports Authority and is also hurting Toys’R’Us.
The company now targets annual single digit organic growth instead of the previous turnover target of 3.5 billion euro by 2020 up from 2.62 billion euro in revenues in 2016. “We will continue to focus on our five strategic priorities (Apparel and Footwear, Business to Consumer, China, US, and Connected Devices and Services) whilst accelerating our consumer-led transformation,” the Amer Sports Board of Directors reported.
Mavic and Enve Composites
Updated financial target
Amer Sports President and CEO Heikki Takala added that, “the US wholesale market continues to be challenging, and whilst demand for our brands continues to be strong, it causes a gap versus our growth target. However our ‘building blocks’ are robust and the majority of our strategic programs are delivering well, most notably Footwear and Apparel, Business to Consumer, and China, and we continue to drive our consumer-led transformation with confidence. In the US wholesale context, we rebalance our growth versus profit, prioritizing profitability and cash to deliver strong shareholder returns,” said President and CEO Heikki Takala.