Despite ongoing financial challenges, Le Coq Sportif reported a robust sales increase in the first half of 2024, with revenue climbing 30% year-on-year. From January to June, the French sportswear brand, which served as the official supplier for the French Olympic and Paralympic teams during the Paris 2024 Games, generated €82 million in revenue. However, its losses have also soared, rising from €10.5 million in the first half of 2023 to €18.2 million this summer—an increase of 73%. The company, originally founded in the Troyes region of France, attributes this financial strain to “substantial marketing investments and high sales costs,” which have placed a heavy burden on its operations.

Although the brand hopes to leverage the momentum of the Olympic and Paralympic Games in the second half of the year and beyond, Le Coq Sportif, owned by Swiss holding company Airesis since 2005, acknowledges that “the economic situation remains concerning.” It also admits to “the existence of a significant uncertainty that could cast substantial doubt on the group’s ability to continue its operations.”

Looking ahead, the company anticipates “continued tight cash flow due to the high working capital requirements,” which are compounded by “outstanding arrears owed to suppliers.” Le Coq Sportif has negotiated a 24-month extension on the repayment of its state-guaranteed loan (PGE) obtained during the Covid period, along with deferments for several tax obligations.

Earlier this year, in May, just weeks before the Olympic Games, the company received a loan of €2.9 million from the event’s organisers, while not all athletes’ uniforms had yet been delivered. The company stated that it still has €150,000 remaining to repay from this amount.

Additionally, Le Coq Sportif revealed that in July, the French government, through BPI France, extended a direct emergency loan of €12.5 million, with a six-month repayment period. Achieving record results in the second half of the year will be crucial for the brand to service these debts.

Furthermore, Le Coq Sportif is currently embroiled in a legal dispute with the French Rugby Federation (FFR), which is seeking €5.3 million in unpaid fees. Despite this, the company remains “confident in a favourable resolution to the ongoing proceedings.”

If its business continues without significant disruptions, the brand plans to expand into the American market, supported by foreign investors, and aims to strengthen its partnerships with medal-winning athletes. The company’s inventory-related credit line, totalling €18 million, has been successfully renewed until 2025. Concluding on an optimistic note, Le Coq Sportif’s management reiterated its commitment to “navigating future challenges with resilience.”