Fenix Outdoor International raised its sales across retail and brand operations in the second quarter, and it anticipates a growing turnover in the third quarter after promising autumn sales of its brands.
The formally Swiss but Swedish-based group reported a sales rise of 5.2 percent to €117.7 million for the second quarter, and its operating profit soared by 54.2 percent to €10.4 million. Fenix Outdoor's net profit amounted to €5.8 million, up from €4.6 million for the same three months last year.
Martin Nordin, the group's chief executive, said in the remarks accompanying the results that the quarter highlights Fenix Outdoor's global scope. The fastest-growing parts of the business for the three months form an eclectic mix, from Switzerland to China and own retail sales in North America. Other growing markets include Central Europe, South Korea and Norway.
The quarter was marked by the acquisition of a minority stake in Bus Sport, the Swiss distribution firm in which Fenix purchased a majority shareholding back in 2011. As previously reported, another acquisition in the quarter was Alpen International, the group's South Korean distributor, which operates 12 stationary stores, online sales and a wholesale business.
When it comes to China, Fenix continues to operate through a joint venture of which it owns 50 percent. For this reason, the result from this Chinese business is included in the outdoor group's report as net income, and Nordin said that it has reached the same level or more than many of its established markets in Europe.
The Frilufts retail division, combining Globetrotter in Germany with Naturkompaniet in Sweden and Partioaitta in Finland, saw its sales increase by 3.0 percent to €65.1 million for the quarter, and it swung from an operating loss of €0.5 million to profit of €1.8 million. The sales increase was aided by the opening of two new Globetrotter city stores in Germany at the end of March.
Led by Fjällräven, the brands division raised its sales by 13.0 percent to €24.3 million for the quarter and its operating profit inched up by €0.1 million to €6.1 million. It was slower than in the first quarter, as some large deliveries occurred in March. The division covers brands from Tierra to Primus, Hanwag and Brunton, along with the online sales of these brands and their stationary stores, and distribution companies focusing on sales of one brand. The group had 23 brand stores in June, up from 18 at the same time last year.
The performance of the group's North American retail business was pushed up by store openings. Fenix Outdoor operates 19 stores in North America, 16 in the U.S. and three in Canada. Nordin added that adjustments to the group's North American distribution structure are beginning to pay off. They were started last year and negatively impacted sales in the first quarter but the U.S. wholesale business showed strong growth to key focus customers in the second quarter.
The global sales division, pertaining to distribution companies selling more than one Fenix brand, lifted its turnover by 4.0 percent to €25.9 million for the second quarter. Its operating profit advanced from €3.2 million to €4.5 million.
For the first half of this year, the group's sales were up by 9.0 percent to €244.9 million. Its operating profit soared by 47.8 percent to €28.7 million and net profit amounted to €19.6 million, up from €12.0 million.
The turnover of the brands division was up by 17.5 percent to €55.7 million, with increases in all regional markets other than the Benelux countries, where it fell by €0.3 million to €4.6 million. The brands managed ample increases in their largest markets, up by €1.6 million to €10.0 million in Sweden and by €3.4 million to €27.5 million in Germany. North America remains the third-largest market for the brands but it nearly caught up with Sweden, as regional sales reached €9.7 million for the half-year, up from €7.3 million.
On the other hand, North America was the only regional market where the global sales division lost some ground in the half-year, down from €12.3 million to €11.4 million. The division's turnover increased from €3.4 million to €4.7 million in Switzerland and from €15.8 million to €19.1 million in Nordic countries other than Sweden. The entire global sales division raised its sales by 20.2 percent to €66.7 million for the six months, and its operating profit reached €11.0 million, up from €7.1 million.
The group's retail business moved up by 1.6 percent to €116.5 million for the half-year. Sales crept up by 1.5 percent to €83.4 million in Germany and by 3.6 percent to €23.0 million in Sweden, while they declined by €0.2 million to €10.1 million in Finland.
The retail division's operating result remained slightly negative at €0.1 million for the six months, but that's an improvement compared with the operating loss of €2.6 million for the same period last year.