In the world of sports, some disappointments cut deeper than bruised egos. For Le Coq Sportif, the elimination of the French national rugby team by South Africa in the quarter-finals of a World Cup hosted on home soil was a blow to both national pride and the brand’s finances. As the official kit supplier for the French team, Le Coq Sportif had high hopes. Before the Rugby World Cup, it reportedly sold around 200,000 units of the national team’s official jersey. The anticipation was that another 250,000 units would be sold during the competition at €95 per jersey, potentially adding up to €24 million in retail value in just two months. However, France’s early exit from the tournament has cast a shadow on these expectations.
While Le Coq Sportif may not have reaped the full retail value of these sales, it was undoubtedly counting on a significant revenue boost. The disappointment came at a time when Le Coq Sportif was already facing challenges. The brand, owned by Swiss private equity firm Airesis since 2005, has been struggling to regain profitability.
In the first half of 2022, Le Coq Sportif’s revenue dropped to €63 million, a €1.5 million decrease compared to the previous year. This was attributed to a decline in footwear sales and a decrease in exports to Spain, although apparel sales saw an 8% increase in value. However, the brand is still grappling with significant operating losses, with a staggering €6 million in the first half of 2023.
The road to profitability has been arduous for Le Coq Sportif. The brand’s net losses have been substantial since 2019, and Airesis has continually injected fresh resources to stimulate growth. In light of these challenges, Le Coq Sportif secured state-backed loans during the COVID-19 pandemic, which now need to be repaid by 2026.
The brand’s commitment to outfitting French athletes at the Olympic and Paralympic Games in Paris, while providing international visibility, has added to its financial pressures. The endeavor required significant equity capital, and the brand sought financial partners, including the French government.
While the future remains uncertain, Le Coq Sportif’s agreement with the Treasury provides some financial relief. However, the brand must now leverage the unique opportunity presented by the Olympic Games, competing with global players such as Decathlon and the LVMH group, to ensure its success and sustainability.
The stakes are high for Le Coq Sportif’s founder, Marc-Henri Beausire, as he navigates the brand through these challenges and seizes the prospects of the Olympic endeavor.