Outdoor sector is weakening - Mammut
19/08/2015
The Swiss National Bank’s decision to unpeg its franc from the euro in mid-January effectively made Swiss exports substantially more expensive than they had been.
The business grew 1.2% in the period, but sales of CHF 99.3 million ($101 million) were down from CHF 103.7 million in the first half last year.
Mammut said the first half is generally weaker than the second but that there has been a general weakening of the outdoor sector worldwide.
“Mammut has to cope with high pressure on margins due to the impact on revenue of the adverse currency situation, as well as to purchasing chiefly in US dollars. This weakens the starting position of the business in its core markets in the eurozone,” it said.
“A further factor is that customers in the Swiss home market increasingly make their purchases in lower-priced markets abroad, which leads to negative price adjustments at home.”
In response to tougher conditions, Mammut is “adjusting its cost structures and reducing complexity”.
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