After a weak spring, outdoor equipment supplier Fenix Outdoor International regained its footing in the summer and made a noticeable recovery in the third quarter.
Sales rose by 4.5 percent to €206.4 million, while operating profit increased by 12 percent to €32.1 million. The bottom line was a profit of €20.9 million, compared to €18.4 million in the previous year. The company, still deep in the red in the first half of the year, has thus stabilized again – and met its CEO’s expectations.
Strong performance from Fjällräven, Hanwag and Devold
The Brands segment – led by Fjällräven, Hanwag and newly integrated wool specialist Devold – saw sales rise 17.0 percent (excluding North American wholesale), with earnings up as well. But wholesale reclassification faced headwinds and the online market remained soft.
Higher pre-orders and tighter brand management across the group paid off. Fjällräven’s North American operations, brought in-house, contributed to the uplift. Devold, acquired earlier this year, still posted seasonal losses – but margins improved significantly, signalling that integration is on track.
Wholesale weakens – especially in the US
The wholesale segment tells a different story. After a 16.8 percent sales decline to €52.8 million in Q2, the Global Sales division fell further in Q3 – down 35.6 percent year-on-year to €34.0 million.
North America remains the weakest link. Sales had already dropped 23 percent to €16.7 million in Q2, and Q3 showed little recovery. Currency headwinds, supply chain disruptions and subdued consumer sentiment weighed heavily. China posted local growth, but it wasn’t enough to offset declines in South Korea and Taiwan.
Retail under pressure in Germany and Scandinavia
The Frilufts segment – which includes Globetrotter, Naturkompaniet and Partioaitta – saw sales decline 3.1 percent to €94.4 million. Brick-and-mortar slightly outperformed online, but the overall picture remained tense.
As Fenix noted in its quarterly report: “Brick-and-mortar retail outperformed the online channel in almost all markets, even more significantly in the third quarter.”
CEO Martin Nordin cited ongoing price competition and high discount sensitivity online as the main culprits. “Discount-driven dynamics and unusually warm weather caused us problems in September,” he said. Consumer sentiment remained subdued, particularly in Germany and Scandinavia – a trend visible since Q2.
Fenix remains cautious despite Q3 recovery
Despite the conciliatory quarter, management remains cautious. After the second quarter, Nordin emphasized that the order books in the Brands and Global Sales segments were “more than solid.” He also stated at the time that the company was seeing “solid demand in its core markets.” He was confident about the second half of the year – an assessment that has now been confirmed.
Demand remained stable, especially in brick-and-mortar retail. Fenix intends to increase efficiency and profitability in the long term by investing in logistics and IT. However, the company is still not issuing a concrete annual forecast – the market uncertainties are too significant. But after a difficult start to the year, there are many indications that the group has turned the corner.
More about Fenix Outdoor
For comprehensive coverage of Fenix Outdoor, visit our sister publication The Outdoor Industry Compass, where you’ll find in-depth analysis and news on the group’s brand portfolio performance, retail operations and market moves.
