Precor, Woodinville, Washington, reported an 8 percent increase in first quarter 2017 net sales, with a 6 percent increase in local currencies, according to financials recently released by Amer Sports, the Finland-based parent company of Precor.
First quarter net sales were €80.5 million ($89.42 million), as compared to €74.4 million ($82.64 million), based on euro-to-dollar conversion rates as of May 17. This follows three consecutive quarters of declining net sales for the company. €16.2 million ($17.99 million) of the quarter's sales was in Europe, while €50.8 million ($56.43 million) was in the Americas and €13.5 million ($15 million) was in the company's Asia Pacific market.
"In the first quarter, we delivered solid growth despite the soft retail landscape especially in the US," Amer Sports President and CEO Heikki Takala said in the financials report. "We made strong progress in Winter Sports Equipment and started to rebound in Fitness. ... Whilst we did not deliver target performance in Sports Instruments and Cycling, we continued to strengthen our new product development with exciting initiatives in the pipeline."
For the fiscal year 2017, Takala expects net sales in local currencies will generally increase year-over-year, despite "short-term market softness." He also anticipates annual growth will be primarily reflected in the year's third and fourth quarters, according to the financials report, partially due to improved digital devices and services. These will lead to "longer term benefits but weigh in our short-term profitability," he said in the report.
Takala also noted that Precor products and services are "gain[ing] traction in the market" and showing "early positive signs" in 2017.
"As the market place and the consumer habits and practices are changing rapidly, we are further accelerating our investment into the omni-channel and digital transformation of the company," Takala said. "We continue to execute at the maximum speed, guided by our strategic glidepath and priorities."