Precor's American Sales Decline 15 Percent in Third Quarter

Amer Sports President and CEO Heikki Takala referenced the Queenax functional training systems pictured and the Spinning licensing deal as the building blocks for 2016 in a conference call with analysts Photo courtesy Precor
<p>Amer Sports President and CEO Heikki Takala referenced the <span data-scayt-lang="en_US" data-scayt-word="Queenax">Queenax</span> functional training systems (pictured) and the Spinning licensing deal as the building blocks for 2016 in a conference call with analysts. (Photo courtesy Precor.)</p>

Precor, Woodinville, Washington, third quarter net sales were down 3 percent in local currencies to EUR89.3 million ($101.4 million), according to financials released by parent company Amer Sports, Helsinki, Finland.

American sales, which compromised 58 percent of total third quarter sales, accounted for the drop and fell 15 percent to EUR 51.5 million ($58.5 million). Europe, Middle East and Africa region sales increased 16 percent to EUR23 million ($26.1 million), and Asia Pacific sales increased 26 percent to EUR14.8 million ($16.8 million).

"We continued to focus on profitability whilst preparing for acceleration in 2016 with important new building blocks," Amer Sports President and CEO Heikki Takala said in a statement.

In a conference call with analysts on Oct. 22, Takala referenced Amer Sports' purchase of Queenax functional training systems in July as one of those building blocks. The second building block he referenced was Precor's assumption of all commercial Spinner bike production under an exclusive worldwide distribution agreement with Mad Dogg Athletics, Venice, California. Financial terms were undisclosed for both deals. Amer Sports expects to "start seeing healthy growth again" as Queenax and Spinning mature in the second quarter of 2016.

Amer Sports continues to improve "profit and profitability within fitness," Takala told analysts.

Amer Sports discontinued some business not considered attractive or healthy in the long term, Takala told analysts. The discontinued business was not identified in the earnings release or in the call with analysts.

Despite the three percent drop in local currencies, Precor showed five consecutive quarters of net sales growth in the third quarter. Precor reported net sales of EUR80.7 million in the third quarter of 2014, and Precor's third quarter net sales increased from the second quarter by EUR7.3 million ($8.3 million).

Amer Sports reported total net sales of EUR713.7 million ($810.1 million) across all of its divisions in the third quarter.

Editor's note: Euro to U.S. dollar conversions are based on the Oct. 22 exchange rate.

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