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No snow means less sales for Atomic and Head

 Poster: A snowHead
Poster: A snowHead
Equipment manufacturers, Atomic and Head, suffer a significant loss because of the last season.
The turnover of Atomic decreased by 41% in the first six months of this year compared to the same period last year.
Head also lost 30.5% of their turnover reported by this Austrian financial site.
Most of the manufacturers have to face the same problem.
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 Obviously A snowHead isn't a real person
Obviously A snowHead isn't a real person
kerekip, I find this facinating, i would like to know how much of Atomic's shortfall is due to Salomon's demise? I want all the info!
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 Well, the person's real but it's just a made up name, see?
Well, the person's real but it's just a made up name, see?
SMALLZOOKEEPER, the article says that Atomic claims there are two ways to reduce this loss.
They want to to reduce the cost of the production as much as possible and the cooperation between Atomic and Salomon should be much tighter than as it is. They claim they expect about 20% loss by the end of this year compared to 2006.

The bad figures of Atomic strongly influence their owner, the Finnish firm Amer. Their income also dropped by 6% in the first six months.
Atomic has lost 12m euros this year so far, and Amer has seen 20m euros loss this year.

It is not in the article, Atomic dismissed 80 employees in March blaming the mild winter for this action. Fischer also laid off 60 employees earlier. Most manufacturers in Austria agree that they may expect 15-25% less income this season.

As I am searching in my old articles, it is interesting to see the figures released in April 2006. Fischer, Blizzard, and Völkl reported record profit after the excellent season of 2005/2006. All of them had hoped to increase this figures in the following season ...


Last edited by Well, the person's real but it's just a made up name, see? on Sat 11-08-07 23:57; edited 1 time in total
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It's hard to imagine that it's just Atomic and Head. Shops in the valley I spent the Winter in started sales in December Shocked
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 Anyway, snowHeads is much more fun if you do.
Anyway, snowHeads is much more fun if you do.
I'm confused here - and SMALLZOOKEEPER can probably help with this...

I'm pretty surprised that this winter has had an effect yet. I'd assumed with product lifecycles, lead times, etc that it would hit next year's figures.

For example, I'm assuning SZK would have looked at what's on offer for the 06/07 season in Feb/Mar 06; ordered in Apr/May; got deliveries in Sep/Oct and had to pay the manufacturers by Dec latest.

So I'd have thought any need to mark down would be SZK's problem, not the manufacturer's (I'm assuning no "sale or return").

If this is the case then the manufacterers would be hit by a downturn in orders around now - as shops are more pessimitic about stocking up.

Besides, in global averaging, every season is a bum season somewhere...?

I'm almost certainly wrong - so, how does it work?
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Will this mean cheaper gear this year or very large discounts on last years unsold stock.
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 Then you can post your own questions or snow reports...
Then you can post your own questions or snow reports...
PhillipStanton, Exactly, but i fear those results are projections and will not be helped by those of us who have reduced their ski buying by 40-50%
Headplant, Oh yes, get in there now and make them an offer!
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 After all it is free Go on u know u want to!
After all it is free Go on u know u want to!
PhillipStanton, retailers would have known fairly early on how the season was going to pan out. They knew they'd be left with large amounts of unsold stock therefore their orders for 07/08 are substantially down. Other factor is that retailers would have done very little in-season top ups to ranges.
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Possibly, you are not going to invest in new skis while in resort if there are rocks coming through and you want to keep some black stuff on the bottoms of your skis.

I spoke to Kate who manages our local Thomas Cook yesterday, and she tells me bookings for the next season are very slow at present, especially for Christmas.

snowHead
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Chris Bish, Good to hear, as our appointment books are filling up already for the festive season. Toofy Grin
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