Head N.V. had a successful first quarter, with sales climbing by 6.7 percent to €61.0 million for the period ended March 31. The gross profit margin rose by 4.8 percentage points to 42.9 percent on higher sales, improved product mix, and lower manufacturing and sourcing costs. There was still an operating loss of €512,000, down from a loss of €10.1 million for the same period last year. The net loss was €1.8 million, against a loss of €11.8 million in 2009.
In the winter sports segment, sales were flat at €14.0 million. Ski sales were flat in Europe but accessories and skiwear increased. Ski sales were down in Canada and Japan. However, the segment over all did well as good snow conditions picked up in January and the Olympics raised demand. Racquet sports improved by 14.4 percent to €35.7 million, with tennis doing better than expected. An improved product mix and higher unit sales were recorded for racquets and balls. Diving declined by 4.5 percent to €11.5 million.
Geographically, Austria had a slight sales gain of 3.8 percent to €21.7 million. Italy saw a drop of 5.4 percent to €8.1 million. The rest of Europe jumped by 22.4 percent to €9.3 million, and Asia climbed impressively by 19.6 percent to €2.8 million. Revenues in North America were up by 7.3 percent to €19.0 million.