Le Coq Sportif sales up 7% in 2016, losses down
Le Coq Sportif still recorded losses in 2016, but they were less than the previous year. The French sport brand, in which Swiss holding company Airesis holds a 79% stake, posted a €6 million loss in operating income, which was however €7.4 million in the red in 2015.
Le Coq Sportif's revenue grew instead by 7% compared to the previous year, reaching €108 million, though still falling a touch short of its holding company's expectations. Airesis had in fact forecast a revenue of €111 million. For the brand, 2016 was a transition year, during which it set up an apparel development centre at its headquarters in Romilly-sur-Seine, France, and boosted its distribution via a series of retail corners.
Marc-Henri Beausire, CEO of Le Coq Sportif and Airesis, said however he was "satisfied with what was achieved in 2016. I think we bolstered Le Coq Sportif's foundations and we now believe in profitable growth in the future. Our retail corner strategy is especially promising, not just on our domestic market, France, but also in Spain and Italy."
Le Coq Sportif was created in 1882 by Émile Camuset. In 2012 it renewed its partnership with the Tour de France, and in 2015 it invested in football, becoming the official kit supplier to top-flight teams in France (Saint-Étienne) and Italy (Fiorentina), two deals allowing the brand to boost its visibility and reputation on the sport market.
Airesis, also the owner of the Movement group, expects Le Coq Sportif's results to keep on improving in 2017, "thanks to a significant increase in apparel sales and a substantial rise in margins." Airesis is confident that the profitability target that was set, which was not disclosed, is within reach.
The Swiss company also stated that bank loans have been secured in order to promote growth. "A series of mandatory convertible bonds, worth €10 million in total, will provide the backbone for future growth," said Airesis in a press release.
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