“Welcome to our new Outdoor Business Insight. Despite the ongoing pandemic, the industry has emerged as one the winners of the crisis. Interest in outdoor activities has recently been high, especially during lockdown periods. M&A, therefore, still plays a strong role in terms of growth, consolidation and succession situations, with private equity funds also having an active role in the circus. Overall, the industry is doing very well in most segments, but small players are gradually coming under greater pressure and have to find niche areas of specialisation in order to differentiate themselves.”
European Market Overview
by Segment in %
by Segment in EUR b
The outdoor industry is considered a winner of the crisis despite the short-term slump for retailers and producers. Low sales figures from lockdown periods could be balanced out with online retail and an outstanding comeback after the re-opening of retail stores.
After a stagnant outdoor year in 2018 (compared to 2017 -1%), the modest market growth of overall +0.5% in 2019 is encouraging. It also reflects the resilience of the outdoor sector in already turbulent times before the COVID-19 pandemic.
Climbing has developed extraordinarily well and is continuing to gain in popularity. Indoor climbing in particular is driving growth (although it is at the moment also under pressure due to Covid-19 restrictions).
Demand for sustainable products has become a central issue on the consumer side and the willingness to pay a higher price for them is given.
M&A is driven by consolidation, but also carve-outs play an important role as companies are concentrating on the core businesses (Calida/Eider & Conzetta/Mammut)
Sources: Source: 360 Research Reports, European Outdoor Group
Key Performance Indicators Peer Group
- The Peer Group consists of listed international manufacturers and retailers in the field of outdoor clothing, equipment & gear
- Recovery in the industry reaches above pre-crisis levels and ends a downward trend in the second half of 2019
- Consistently high EBITDA margins and lively M&A activity generate EV/EBITDA multiples between 9x and 12x for listed companies
Sources: Infront Analytics
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Your SAZUN Team