INTERSPORT Retail Sales 2010 for the first time in excess of Euro 10 billion

As there are no major sporting events in 2011 apart from the FIFA Women's World Cup 2011 taking place in Germany , INTERSPORT expects continued growth but on a more modest level.

"2010 was a record year for our Group. Our strategy has proven its effectiveness once more“, says Franz Julen, CEO IIC - INTERSPORT International Corp. „The strong brand INTERSPORT, our business model combining a uniform international approach and standards on the one hand and leaving enough room for national adaptations on the other hand grant us a very close proximity to the consumers.“ As further success factors Julen mentions "the long-term trusted, good supplier relations, a promising exclusive brand strategy, the local retailers and the entrepreneurial spirit prevailing in our Group combined with a sustainable growth strategy favouring long-term success over short-term profit maximisation".

In 2009 the INTERSPORT Group had realised retail sales of Euro 9.2 billion. The nine percent sales increase in 2010 is based two thirds (plus EUR 600 million) on organic growth and one third (plus EUR 300 million) comes from new stores. With exclusive brands INTERSPORT realised EUR 1.8 billion retail sales. Thus the exclusive brand share in the total retail sales of the Group amounts to 18%.

In Europe as well as world-wide INTERSPORT could expand the position as the leading sports retailer. Based on the evaluations of the Federation of the European Sporting Goods Retail Associations (FEDAS), whereas in 2010 the European sporting goods market increased by roughly 3% to EUR 39 billion, INTERSPORT newly reaches in Europe a market share of 22%.

Retail sales development in 2010
On a global level in particular the INTERSPORT core competencies "Football" with the highlight FIFA World Cup in South Africa, "Outdoor“, „Running“ and „Fitness“ have disproportionately contributed to INTERSPORT's retail sales increase.
In Central Europe, Canada and the Scandinavian countries however winter-sports were the main driving force for the positive development. Deepest winter, cold temperatures in January and February and also in November and December contributed in many countries to a double-digit sales increase compared to the same periods of the previous year. All winter categories have generally shown respective positive sales with the exception of the helmet business, which could not quite keep-up with the past high level. Retailers in Denmark, Germany, France, Canada, Austria and Switzerland have primarily contributed to this positive sales development.


Ongoing strong Expansion in the core markets and in new regions
Besides an enhanced development in its traditional markets INTERSPORT has continued its expansion into new markets in 2010, with Egypt, Saudi Arabia and Korea; three countries with a growing population and a high market potential have joined in.
In 2010 INTERSPORT in total opened 200 new stores and thus now disposes of 5'320 points of sales in 39 countries worldwide.

More modest increases expected for 2011
Due to the warm weather the year 2011 commenced with difficulties for the INTERSPORT Group. The exceptionally warm temperatures in the first quarter drove sales in categories like „Running“, „Football“ or „Fitness“, but at the same time they led to a decline in winter-sports sales which are very important for this season.

This weather-related weakness combined with a shortage in product stocks in several categories led in most of the countries to a two-digit sales-decrease in January. In February business was doing slightly better, but still below the previous year. Then, in March some of the countries could increase their retail sales again compared to the previous year.

However, with the exception of the FIFA Women's World Cup in Germany, where INTERSPORT will be the official sports shop in the organising country, in 2011 a major sports event will be missing, and so for the current year INTERSPORT does not expect similarly high growth rates as in 2010. This even less since November and December 2010 were real "century months" and the sales realised then may possibly not be reached again. "Certainly 2011 will be more difficult than 2010, but although the Group is not growing that fast we will continue to gain further market share", summarises Franz Julen, CEO - INTERSPORT International Corp.

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