Amer Sports’ Cycling Business Growing
HELSINKI, Finland – Sports equipment maker Amer Sports Corp., whose brand portfolio includes Mavic, saw its 2014 net sales in the category cycling increase by 8% to 138.5 million euro.
Cycling equipment which includes rims, wheels and tires represented 80 % of net sales of 138.5 million euro. Cyclist’s equipment like apparel, helmets and footwear including pedals accounted for 20%. Some 73% of cycling division’s net sales was generated in the EMEA (Europe, Middle East and Africa region), 12% in the Americas and 15% in Asia Pacific. In October-December, cycling’s net sales increased by 16% to 36 million euro in local currencies.
‘Challenging’ market conditions
According to Amer Sports President and CEO Heikki Takala, the 2014 market conditions were again ‘challenging’. “We faced significant headwinds in Russia with adverse profit impact from the currency devaluation, said Takala. “We also saw an exceptionally late and mild winter in Europe, resulting in a sales decrease especially in our winter sports activities. These challenging market conditions will persist in 2015, with adverse impact from the late and mild winter and on-going risks in Russia.”
Cycling: profitable growth drivers
For Amer Sports cycling is, together with fitness and sports instruments the profitable growth drivers. In 2015 Amer Sports expects net sales in local currencies to increase and profit margin to improve from 2014, despite challenging market conditions. “We will continue to focus on apparel and footwear growth, consumer-driven product and marketing innovation,” said Heikki Takala in Amer Sports’ financial statement for 2014.