Lockdowns and store closures hit Technogym’s sales in the first quarter, although this was partly offset by higher sales of home fitness equipment, as more people exercised indoors. The Italian company’s total revenues dropped by 11.2 percent from the year-ago quarter to €116.8 million, or by 11.9 percent in constant currencies, weighed down by lower business-to-business sales.
Inside sales (e-cmmerce and tele-sales) and retail sales, two segments which are both related to home fitness, rose by 10.2 and 72.1 percent in euros, respectively, as compared to a year ago. They represented 11.6 percent of total sales, up from 8.7 percent for the corresponding period. The company reported decreases in euros of 11.7 percent in field sales and 21.3 percent in wholesale revenues, which remain the main distribution channels for the group.
The company’s turnover grew by 15.9 percent in Italy, but dropped by 8.6 percent in the rest of Europe, where Technogym’s performance was impacted by weakness in the U.K. and Russia, partly offset by robust sales in France and Germany. Sales went down by 24.0 percent in the Middle East, India and Africa and by 17.2 percent in the rest of the Asia-Pacific area. They dropped by 17.2 percent in North America and by 34.5 percent in Latin America.
About 90 percent of the company’s revenues were generated outside of Italy, with more than 50 percent of the total coming from outside Europe.
Indicating that it is difficult to estimate the impact of the pandemic, the company said that it should benefit from the gradual easing of lockdown restrictions around the world, as many consumers return to exercise and wellness after weeks of inactivity. As of early May, the situation for fitness clubs had improved generally, with many of them already operational in China.
