Sales Up for Rapala North America Despite Turbulence

Originally posted by Angling International

Rapala’s third quarter performance has kept the company’s year-to-date net sales figures close to those of last year.

Third quarter net sales were boosted by the North American market (+9%) and, despite challenging market conditions, show an overall 2% increase on the same quarter last year.

Rapala’s strategy to improve profits, lighten the balance sheet and improve operational performance is proceeding well, says the company.

Contrasting Q1 sales for VMC Rapala and Shimano

Two of the world’s biggest fishing tackle manufacturers reported contrasting sales fortunes in the first quarter of 2016.

Originally posted in Angling International

Lure making giant, Rapala VMC Corporation, reported First Quarter net sales of €69.7 million – 6% down from the previous year (€73.9 million) – while fishing tackle sales at Shimano increased 5% compared to the same period in 2015 to 16,796 million yen.

Despite reporting a slow start to 2016, Rapala says that its financial guidance for the year remains unchanged and that it expects net sales and comparable operating profit to be above last year’s levels.

President and CEO Jorma Kasslin told investors: “The year started a bit slow, but did not include any major surprises. In North America the ice fishing season ended up being short, but now attention has shifted to the summer fishing.”

He added that although the Russian business environment continued to be ‘challenging’, there were some signs of stabilisation in the market. “Conditions are also difficult in some other regions, but we are well positioned to face the challenges.”

Shimano’s fishing operation is dwarfed by its bicycle components business, which saw its net sales drop by 20.3% from the same period last year to 65.3 billion yen, resulting in a 16.2% decrease in group sales compared to 2015.

Minn Kota and Humminbird Hitting Super Sales

Great first quarter reflects amazing products

Originally posted in Angling International

Strong new products from the Minn Kota and Humminbird brands, alongside another improved performance from its kayak and canoe operation, helped Johnson Outdoors deliver increased revenue and reduced operating losses in the first quarter of the year.

Total company operating loss during the seasonally slow Q1 was $0.9 million compared to $7.3 million in 2015. Prime drivers for the improvement, said the company, was higher volume and lower legal expenses. Johnson was involved in a successful patent dispute with Garmin International Inc last year.

Net sales for the quarter increased 20% to $85.3 million compared to $70.8 million in the corresponding period last year. Pre-season demand in key fishing channels powered a 35% surge in Marine Electronics revenue. Watercraft also continued its revival with a 17% increase as gains in Old Town and accessory brands kept pace with the improved paddle market.

“We are very pleased with our strong start to the fiscal year. Our fishing, camping and water recreation businesses are heading into the key selling periods for our products during the next six months with strong, positive momentum,” said Helen Johnson–Leipold, Chairman and Chief Executive Officer.