Jun 17, 2009
Lafuma sees deeper losses in first half-year
Jun 17, 2009
The textile and sporting equipment group Lafuma has seen its net loss swell in the first half-year (up until the end of March) of its activities for 2008/2009, but sees an “improvement” of its situation in the second half-year period, it announced on Thursday 4 June in a press release.
The group showed a net loss of €3.2 million, up from €0.7 million in the same period of 2007/2008, it stated. At the operational level, the results tipped into the red with a loss of €3.1 million compared with a profit of €0.7 million a year earlier. Turnover increased by 7.2% to €129.6 million, but decreased on the perimeter by 4.9% owing to exchange rate fluctuations.
Activity has been maintained by sales in own name stores held by the group, as well as in Asia, whereas specialist distributors in France and in Europe have receded “under the double effect of the policies of running down stock and lifeless consumption in the market”, explained the group.
The integration of mountainwear manufacturer Eider, acquired in mid-2008, translated to an operational loss of €0.6 million, “principally linked to the action of destocking”, specified the group. The restructuring undertaken after the acquisition caused a loss of €3.2 million, they added.
Mentioning the months to come, Lafuma said that they expect an “improvement in everyday operational performances” in the second half of the year.
The group, which recently raised €10.4 million from its shareholders, highlighted having “secured” is finance from its banks. Lafuma had indicated at the end of 2008 wanting to focus on improved results and profitability in 2009, to the detriment of its growth.
For the period 2007/2008, finishing at the end the end of September 2008, the group recorded a drop of 46.2% in net profit to €1.6 million, whilst turnover increased 4.6% to €262.1 million. Operational profit dived by 32.2% to €5.8 million.
By Jonathan Fulwell (Source: AFP)
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