Head estimated in its annual report that the winter sports market reached a global turnover of €900 million in 2011, down from €920 million in wholesale value the year before. The Austrian company estimates that sales of skis amounted to €310 million, bindings €150 million, boots €230 million and snowboards €210 million.
In the ski market, Head believes that Europe represents 65 percent of the global market, North America 26 percent and Japan 9 percent. The snowboard market is largest in North America, followed by Europe and Japan. The market included 3.2 million pairs of skis, down from a peak of 6.5 million pairs in the late 1980s. Snowboard sales peaked in 1995 at 1.6 million units but have since declined to about 900,000 units, Head estimates.
The racquet market suffered a 5-6 percent decline in 2011 to a value of €300 million, or about 8.4 million units. Tennis balls were at 23.1 million dozen and had a slight increase in value for the year to €195 million, up from €183 million in 2010. Head noted that it exited the badminton category this year. The diving market actually showed an increase, according to Head, at €400 million this year as compared to €350 million the prior year.
As for its own business, Head's sales slipped by 1 percent to €339.1 million last year, while its profit crashed to €0.3 million, down from €7.3 million the previous year. Cash from operations was down €14.0 million to €5.5 million as a result of lower profits and an increase in winter sports inventories. It is carrying €101.9 million in total debt and had €21.1 million in cash on hand at the end of the year. R&D spending was €8.7 million this year against €8.9 million the year before. CapEx spending rose to €8.8 million from €8.5 million.
