French sporting goods giant Decathlon doubles local losses
Losses at the local operations of French sporting giant Decathlon, which doubled in the last financial year, have prompted its parent to provide a letter of support, according to new accounts lodged with the regulator.
Decathlon sells most of its products through Super Retail Group’s Rebel Sports stores and BCF, from camping to cycling and water sports gear. In 2020, it started to deviate from its past strategy of selling mostly private label products to signing partnerships with brands and businesses.
The CEO of Decathlon sports stores resigned in September 2022.
According to the retailer’s accounts, revenue increased to $51.4 million over the year to December 31 – up from $46.4 million – but cost of goods sold rose significantly, as did finance costs.
Like other fitness retailers, Decathlon’s online sales doubled during the pandemic amid a boom in demand for sports equipment and bikes, but sales have since normalised. Online sales fell to $7.7 million in 2022 from $11.8 million the year before. Its losses in 2022 doubled to $18.6 million from a loss of $9.3 million the year before.
The directors received a letter of financial support from its parent, Decathlon SE, in February, the accounts lodged with the Australian Securities and Investments Commission show. “Should the financial support provided by the parent entity cease to exist a material uncertainty is present that may cast doubt on the ability of the company to continue as a going concern and, therefore, whether it will be able to realise its assets and extinguish its liabilities in the normal course of business and at the amounts stated in the financial report,” the accounts read.
Decathlon opened its first Australian outlet in 2017, 16 months after setting
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