Airesis, the Swiss-based parent company of Le Coq Sportif and Boards & More, reported consolidated net income of 5,539,000 Swiss francs (€4.6m-$6.1m) for its shareholders in 2011, up from CHF 4,483,000 in the previous year, in spite of a marginal drop in consolidated revenues to CHF 169.4 million (€140.7m-$187.5m), due to the appreciation of the Swiss franc.
In euros, both Le Coq Sportif and Boards & More enjoyed double-digit sales growth. Le Coq saw its revenues advance by 10 percent to €98.7 million. This includes a 29 percent jump in royalties to €6.4 million. In Italy alone, sales reportedly grew by 4 percent to €24 million. Combined with the licensees' sales, the brand's total wholesale-equivalent revenues went up by 16 percent to €189.1 million in 2011, and the distributors' own sales jumped by 41 percent.
The gross margin declined to 49 percent for Le Coq from 50 percent in the previous year, and operating expenses increased by 7 percent, due in part to the opening of new stores. Also, the company took over the distribution of its products in the U.K. The operating profit (Ebit) fell by 2 percent to €4,399,000 and the net result declined by 29 percent to €4,022,000.
An additional double-digit increase is expected for 2012, according to company officials. Airesis points out that Le Coq's main challenge now is to expand its presence in the apparel sector, capitalizing on the investments it has made to reopen its French factory in Romilly. It will be used to supply the four official jerseys for the Tour de France cycling race this coming summer. Le Coq is also planning to open more corporate stores in Milan, Marseille and Barcelona.
The Milan store will have 240 square meters of retail space and will be located on via Dante, the important pedestrian shopping street leading up to the cathedral's square. Due to be opened just before the Tour de France, it will be the brand's first store outside France, where it already has seven single-brand locations.
Boards & More is also investing in new product development, notably on stand-up paddle boards produced under its Fanatic brand. North Kiteboarding remains the leading brand within the company's portfolio, and its sales grew by 15 percent in 2011, contributing to an overall sales increase of 14 percent to €38.6 million.
The gross margin remained stable at 42 percent of sales for Boards & More. Its operating income doubled to €607,000 and its net profit grew by 65 percent to €3,097,000.
