French sport brand Le Coq Sportif estimates 3 to 5% growth in 2018
Although affected like many other apparel brands by the long hot summer and the ‘yellow vest’ demonstrations in France, French sportswear brand Le Coq Sportif is forecasting positive sales and margin results for 2018, continuing on the growth path after returning to profitability in 2017. The sport and lifestyle brand owned by Swiss holding company Airesis is forecasting a revenue between €121 million and €123 million for 2018, equivalent to an increase between 3 and 5%.
Le Coq Sportif’s EBITDA is expected to range from €4.5 million to €5 million, a substantial improvement compared to 2017, when it reached €3.8 million - in other words, a rise between 18 and 43%. Gross margin should range from 48 to 50%, as opposed to 45% in 2017.
The French sport brand, founded in 1882, did state that it was affected by meteorological conditions, specifically a very warm autumn which limited its sales of winter clothes, as well as by the ‘yellow vest’ demonstrations in France in the latter part of 2018. The disruption caused by the demonstrations reportedly inflicted loss of earnings between €3 million and €4 million.
In terms of product categories, “apparel continued to record sustained growth and enhanced effectiveness, enabling profitability to improve,” said Airesis, adding that “the partnership with the French Rugby Union Federation should significantly boost the brand’s reputation in the future.” Le Coq Sportif is once again the official kit supplier for the French national rugby union team from this season, and will do so for six years.
The brand’s senior management is confident, and General Manager Marc-Henri Beausire is convinced that “[Le Coq Sportif] will continue in this direction, and push ahead with expanding and improving the business in 2019 and beyond.” The sales forecast for 2019 is for a minimum of €135 million, together with EBITDA of at least 4%.
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