Intersport International’s revenue slumps by 13.8% in 2020
Intersport is facing a difficult year. The Bern, Switerland-based sport retail group has reported a 13.8% slump in revenue in 2020, penalised by the global health crisis and by the fact that its global store network has shrunk, resulting in a total 2020 revenue of €10.6 billion, as opposed to the €12.3 billion generated in 2019.
Intersport International’s comparable sales also slumped in 2020, dropping by 9%. As of now, the group has 5,186 stores, while a year ago it operated 5,426, in other words it has lost 240 branches.
Intersport's financial year has been affected by the global repercussions of the pandemic on retail trade. But even before the pandemic’s outbreak, Intersport was under pressure due to “the warmest winter ever known” by the group. Multiple lockdowns have had an impact on business, although Intersport stated it has managed to navigate the crisis satisfactorily, reacting to “make sure it could manufacture and source [products] outside Asia.”
After two negative quarters early in the year, Intersport, whose chairman for France and Belgium, Jacky Rihouet, joined the board of directors last autumn, enjoyed “a sales and EBIT rebound in the third quarter.” However, the group was again under pressure in Q4, as the pandemic's second wave broke out in several countries.
Looking at the regional results, some disparities are worth underlining: in 2020, the business grew in China, Australia and the Ukraine, while southern Europe, South-East Asia and Latin America recorded shortfalls at rates higher than the group as a whole.
In 2020, Intersport International’s online sales “accelerated significantly, trebling in value in many markets.” The Athlete’s Foot, the sneaker and sport footwear specialist owned by Intersport, reported a 9% revenue drop, down to approximately $400 million (nearly €330 million). Despite this, the retailer extended its footprint in 2020, growing from 561 to 570 stores.
Intersport International is optimistic about 2021, encouraged by the growth in sport practitioners in general, and in particular by the buoyancy of the running, fitness and cycling categories. The group has stated that its Spring/Summer 2021 results will be better than those recorded in the same period in 2019.
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