Precor-spinning-bikes-012016-595.jpg Image courtesy Precor.
This quarter marks the second consecutive period of growth for Precor, following three consecutive periods of declining net sales.

Precor Net Sales Grow 6 Percent in Third Quarter 2017

Amer Sports President and CEO Heikki Takala attributed Precor's "accelerated" growth to new product initiatives, despite "short-term market softness."

Precor, Woodinville, Washington, reported a 6 percent increase in third quarter 2017 net sales to €84.5 million ($98.21 million), according to financials released by Amer Sports, the Finland-based parent company of Precor.

This marks the second consecutive period of growth for Precor, after three consecutive periods of declining net sales.

€23.9 million ($27.78 million) of the quarter's sales was in Europe, while €45.1 million ($52.42 million) was in the Americas and €15.5 million ($18.01 million) was in the company's Asia Pacific market.

In his Oct. 26 earnings presentation, Amer Sports President and CEO Heikki Takala said he is pleased to see "top-line momentum" in the company's fitness segment.

"Top-line momentum is coming thanks to new product initiatives, the pipeline is now fully out there," he said. "We do get some negative mix impact from the average prices being a bit lower, and not yet being at full factory efficiencies. Nevertheless, we are pleased about reigniting the growth, and next we can focus on getting our margins right. The order book going forward remains strong."

In May, Takala said he expected 2017 year-end net sales would generally increase year-over-year, despite "short-term market softness." He projected no changed to that outlook in his Oct. 26 presentation, but did say 2017 growth would be "biased" to the second half of the year.

"[W]e think that we are actually now on a good momentum phase," Takala said of company's fitness business. "First on top line and then, of course, as said already, we focus on the gross margins, so the health of the growth. But important [is] to now roll out all of the initiatives to the marketplace and gain that traction that we’ve been looking for behind the investments we made."

Editor's note: All monetary figures are based on euro-to-dollar conversion rates as of Nov. 1.

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