In Q2, the Asia/Pacific region increased sales currency-neutral by strong 16.2 percent and by 14.3 percent in Euro terms to €47 million. After six months the sales growth was currency-neutral 9.7 percent (in Euro 6.1 percent) and reached in total €91 million. This region contributed 10 percent to consolidated sales. The gross profit margin improved significantly from 47.6 percent to 51.3 percent. Like-for-like, orders on hand were up 3.9 percent (in Euro 1.6 percent) totaling €81 million.
Outlook 2005
Total orders on hand as of June 30, 2005 increased currency-neutral by 6.2 percent marking the 38th consecutive quarter of order increase. In Euro terms, total orders were up by 6.7 percent to €772 million. The orders are mainly for delivery in the second half of 2005.
By segment, Footwear orders were up by 6.9 percent currency-neutral (in Euro 7.4 percent) to €536 million. Apparel orders increased to €195 million, an increase of 4.6 percent (5.1 percent) and Accessories totaled €40 with a growth of 5 percent (4.8 percent).
Based on the strong results achieved so far this year as well as the order outlook, management raises sales guidance from previously mid to high single digit growth to up to 10 percent. Gross profit margin is also expected to reach the higher end of the guidance between 51 percent and 52 percent, or even possibly above. SG&A expenses are forecasted slightly above 31 percent on sales and EBIT margin should be clearly above20 percent. With a tax rate of approximately 29 percent, management expects net earnings to come in between €264 million and €274 million. This translates to significantly above €16 per share or a mid to high single digit increase on a like for like basis. All in all 2005 should once again set new records in sales as well as become the 5th consecutive year with record earnings.
marketing@alchempro.com
