Precor reports over 3 percent growth in Q4 and 2017 sales with new product launches and “networked fitness” driving the growth.
Precor, Woodinville, Washington, reported a 3 percent increase in 2017 net sales to €361.1 million (AU$566 million) and a 4 percent increase in fourth quarter net sales to €114.6 million (AU$180 million), according to financials released by Amer Sports, the Finland-based parent company of Precor.
In local currencies, net sales for the year increased by 6 percent as a result of “product launches and networked fitness.”
This marks the third consecutive period of growth for Precor, after three consecutive periods of declining net sales. The fourth quarter of 2017 was the brand’s most fiscally successful period of the calendar year. Precor sales, in total, also comprised 14 percent of Amer Sports’ business for the year.
In a February 8th earnings report, Amer Sports President and CEO Heikki Takala said he was pleased with Precor’s “accelerated growth” in 2017, particularly in the fourth quarter.
“2017 was the eighth consecutive year of growth and broad-based improvement for Amer Sports,” said Heikki. “The consumer shopping behaviour is changing rapidly, calling for a commercial business model transformation. We have pursued this transformation proactively, as we have invested significantly into our commercial omni-channel transformation and direct consumer engagement, with focus on long-term health and value creation.
“However, in 2017, we also continued to create short-term value as we reached record results in three of our four strategic financial targets: record sales, record cash flow and strongest ever balance sheet,” he continued.
€87 million (AU$136 million) of the year’s sales were in Europe, while €213.6 million (AU$335 million) were in the Americas and €60.5 million (AU$95 million) were in the company’s Asia Pacific market. Each of these figures represented a year-over-year increase of at least 2 percent.
Looking forward, the earnings report went on to state: “In 2018, Amer Sports’ net sales in local currencies as well as EBIT excl. IAC are expected to increase from 2017. Due to ongoing wholesale market uncertainties, the quarterly growth and improvement are expected to be uneven. The company will prioritise sustainable, profitable growth, focusing on its five strategic priorities (Apparel and Footwear, Direct to Consumer, China, U.S. and Connected Devices and Services) whilst continuing its consumer-led transformation.”
For more information on Precor and to find out more on the growing range of ‘Networked Fitness’ products click here or enquire below.