Cookie consent

We use cookies to improve your experience on this website. By continuing to browse our site you agree to our use of cookies. Tell me more | Cookie preferences

How the skies tell Head if business will be sunny or gloomy

Sports group embraces discount stores

    Just Watched

    Sports group embraces discount stores

Sports group embraces discount stores 04:53

Story highlights

  • Head reported a 13.1% decline in sportswear sales in the first quarter of 2013
  • The summer has Grandslam success with British tennis player Andy Murray using a Head racquet to win Wimbledon
  • Head CEO Eliasch believes the economic program in Japan will resuscitate the country's stalled economy

While the eyes of the corporate world remain fixed on the financial markets, the boss of sportswear giant Head just needs to look skywards to forecast if business will be sunny or gloomy.

A quick glance out of the office window gives chief executive Johan Eliasch insight into the about the Netherlands-based company's sales prospects.

Eliasch tells CNN that the weather has more ability to cast a shadow over business than financial markets.

Read more: Sorrell: Eurozone needs leaders

Speaking with CNN's Max Foster, he said: "If we have a particularly bad season, weather wise, it doesn't matter how good the economy is, and vice versa."

After Europe's long winter, Head reported a 13.1% decline in sportswear sales in the first quarter of 2013 compared to the previous year. The cool weather hit the racquet sports market hard, according to a Head statement released in May.

Read more: Telecom boss: Croatia needs reform

Currency fluctuations and economic policies by governments and central banks are also taking a toll on the company.

Eliasch says Head is "suffering" from a depreciation in the yen, following Japanese Prime Minister Shinzo Abe and the Bank of Japan's implementation of a $117 billion stimulus package to boost growth.

Read more: Will Croatia benefit from the EU

However, Eliasch believes the economic program in Japan will resuscitate the country's stalled economy and says it's probably a "good investment."

He added: "Over the last 15, 20 years we've seen the stagnation [in Japan] so I guess that's worthwhile to suffer these currency losses [with] Japan returning to its former glory."

When asked about Europe, Eliasch said he believed the embattled continent needed to take "painful" steps to "reinvent" itself.

But while results disappoint off the court, the summer months have brought Grandslam success on-court with British tennis player Andy Murray using a Head racquet to win Wimbledon and end Britain's 77-year wait for a men's singles champion. Beaten finalist and world number one, Novak Djokovic, also competed with Head equipment.

And the chief executive believes this is down to the company's "exciting technology" in Graphene -- a lightweight and ultra-strong material.

Eliasch says: "We were always very popular with the pros in every sport that we've been [in]."

      Marketplace Europe

    • spc marketplace europe latvia valdis dombrovskis_00021207.jpg

      CNN's Nina Dos Santos visits Latvia to speak to the country's outgoing Prime Minister and the prospects for the eurozone's 18th member.
    • spc marketplace europe malta immigration africa_00002118.jpg

      Malta is the gateway to Europe and on the frontline of the immigration flows. Isa Soares reports from a detention center on the Mediterranean island.
    • spc marketplace europe malta immigration vox pops_00001419.jpg

      CNN's Isa Soares speaks with people on the streets of Valletta who say their country can't cope with more migrants from Africa and the Middle East.
    • spc marketplace europe malta george vella_00032005.jpg

      Malta cannot afford to continue supporting migrants from war-torn countries in its over-crowded detention camps, the country's foreign minister has told CNN.
    • spc marketplace europe 2013 what went wrong_00020426.jpg

      Slow recoveries, bailouts, and youth unemployment. Richard Quest speaks to Europe's top CEOs about the issues of 2013.
    • spc marketplace europe 2013 defining moments bob parker intv_00010826.jpg

      CNN's Richard Quest speaks to economist Bob Parker about defining moments of 2013 and about what to expect in 2014.
    • spc marketplace europe estonia energy_00000923.jpg

      The Baltic nation of Estonia is developing its oil shale energy reserves in a bid to become energy self-sufficient.
    • spc marketplace europe nani beccalli falco_00041005.jpg

      Europe must stop being nationalistic if it wants to help a lost generation of workers, the regional boss of U.S. conglomerate General Electric says.
    • spc marketplace europe greece petros christodoulou_00002025.jpg

      Greece is on the way to economic recovery as investor faith returns to the recession-ridden eurozone nation, an executive at Greece's largest bank has told CNN.
    • spc marketplace europe euro jim cloos_00012617.jpg

      One of the masterminds behind the euro says Europe would have suffered a far worse fate if the single currency had never been created.
    • spc marketplace europe maastricht eu_00002401.jpg

      Nina Dos Santos visits the Dutch city where the European treaty carrying the city's name came into force 20 years ago.
    • spc marketplace europe spain working hours_00010525.jpg

      As Spain continues its drive to slash budgets and cut spending, one of the nation's favorite pastimes is under threat as ministers look for ways to boost productivity.