Le Coq Sportif sees 4% sales increase in H1
The trend is encouraging. In the first six months of the 2014 fiscal year, Le Coq Sportif has seen its turnover reach 52.9 million euros, up 4% compared to the same period last year.
Philippe Erard, chairman of the board of directors at Airesis, the Swiss investment company that owns 75% of le Coq, said in the presentation of the company’s results that the growth is mainly due to growth in sales of apparel, which reached into the double digits.
Airesis stressed that the operating result of le Coq surpassed 400,000 euros. Its net profit remained negative but the loss was reduced from 2.8 million euros last year to 1.9 million in 2014. The brand has significantly reduced its logistics costs in order to increase profitability.
Its EBITDA increased from 67,000 to 414,000 euros. It aims to stabilize its cost structure and focus its investments on marketing. Significantly, Le Coq Sportif maybe become the next equipment provider for the soccer club AS Saint-Etienne. An agreement has been reached for a contract beginning with the 2015-16 season.
Airesis, which lost its board sports division “Boards & More” late last year, says that it is now focusing on the development of le Coq Sportif. However the Swiss company "remains open to acquire companies with a great potential within the limits of its strategy." Management explained that it will take its time to find a brand with expertise and history. Its experience with Boards & More and Le Coq Sportif have naturally motivated to look closely at sports brands.
In the first half, in terms of its overall business, Airesis has posted an non-audited turnover of 53.5 million euros (64.6 million Swiss francs) with a net loss of just under 2 million euros.
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