Precor, Woodinville, Washington, reported virtually flat third quarter 2018 net sales of €88 million ($100.47 million), according to financials released by Amer Sports, the Finland-based parent company of Precor. This follows two consecutive quarters of declining revenue for the brand.
Through the first nine months of 2018, Precor reported a 4 percent year-over-year revenue decrease to €246.3 million ($281.21 million). This was an increase of 1 percent in local currencies.
In his Oct. 25 earnings presentation, Amer Sports President and CEO Heikki Takala called the quarter disappointing but expressed optimism about the fourth quarter, alluding to the two-year, $30 million vendor agreement Precor recently signed with Planet Fitness.
"[W]e have good new customers, big new customers, and...we expect to be able to ship to them for the first time in Q4, and we still believe the year is going to be a solid year of growth in fitness," Takala said.
Until mid-2018, Planet Fitness maintained a preferred vendor contract with Life Fitness. During a July 26 earnings call for Brunswick, the parent company of Life Fitness, Brunswick Chairman and CEO Mark Schwabero said Planet Fitness would begin offering "broader equipment choices" to its franchisees in the third quarter of 2018.
€20.7 million ($23.63 million) of Precor's third quarter sales was in Europe, while €45.1 million ($57.43 million) was in the Americas and €17 million ($19.41 million) was in the company's Asia Pacific market.
"We were not exactly in line with our own expectations on top line for the quarter, but for the full year we confirmed our growth expectation and, indeed, we know that the building blocks are mostly in place," Takala said of the quarter's business. "As of Q4, we won several new customer contracts, and we know that we will start shipping against those contracts as of Q4. So, basically, the expectations for the full year are confirmed."