Black Diamond Inc. 1Q sales up on acquisitions, but income swings to loss on spring delay

Recent acquisitions of Poc Sports and Pieps helps boost sales, but total margins drop on spring order delays and Japan distribution reorganization.

Black Diamond Inc.’s (NYSE:BDE) recent acquisitions of Poc Sports and Pieps helped it increase sales for the first quarter 2013, but delayed spring orders (in the face of late winter weather) and a reorganization of its Japanese distribution weighed on margins and led to a quarterly loss.

The Salt Lake City-based parent to Black Diamond Equipment, Gregory Mountain Products, Poc and Pieps brands reported sales up 10 percent to $51 million in the first quarter, compared to a year ago, largely reflecting those recent acquisitions. Officials did not release, organic revenue growth — minus Poc and Pieps — making for a tough year-over-year comparison. And despite the higher revenue, quarterly, net income swung to a loss of $3 million, versus a profit of $2.6 million a year ago.

Black Diamond CEO Peter Metcalf said while this year’s late winter weather helped move winter equipment inventory, such as Black Diamond’s skis, it also delayed spring/summer equipment orders, such as the brand’s climbing gear. First-quarter sales also took a hit for Gregory in Japan, where the company is transitioning from a third-party distributor to direct distribution.

Metcalf said he expects the negative effects of the spring delay and Japanese reorganization to be short-lived. The company maintained its full-year 2013 projections for sales to rise 23-26 percent to between $216 million and $221 million, with second half growth fueled by Black Diamond’s apparel launch.

“What is especially gratifying is that fall '13 is now sold out and spring '14, which represents our entrance into the outdoor-inspired lifestyle sports wear, is being well-received by the trade,” Metcalf said during the company’s conference call with investors. “The tight spring '14 collection consists of approximately 40 styles and 150 SKUs with a primary focus on summer alpinism and modern cragware. We are employing both high-tech synthetic, cotton and merino blend fabrics for a line of sportswear that will look as sharp on the deck of the brew pub as it will perform on a mountain crag or summer peak bag.”

The company also will launch a new website to further boost direct-to-consumer sales, which grew by double-digit percentage points in the first quarter, officials said.

But investors showed less confidence following Black Diamond’s earnings report, sending the stock down more than 8 percent as of midday Tuesday. The company is down to $4.1 million in cash with $41.5 million in debt and $16.6 million remaining in a line of credit.

Click here for Black Diamond Inc.’s full first-quarter 2013 report, issued May 6, 2013.

-David Clucas



Black Diamond 3Q sales up on new apparel, but losses mount on higher costs and Pieps recall

Black Diamond Inc. (NYSE: BDE), parent to its namesake brand, along with Gregory, Poc Sports and Pieps, reported higher sales for the third quarter 2013, but a third-consecutive quarterly loss sparked talk of bringing in senior executive help and profitability consultants. The more


Black Diamond Inc. exploring options to sell brands

Black Diamond Inc. (NYSE:BDE), the parent company of Black Diamond Equipment, Poc Sports and Pieps told investors Monday that it has hired financial advisory firms Rothschild Inc. and Robert W. Baird & Co. to lead the exploration “of a full range of strategic alternatives for more


Black Diamond explores sale of Gregory assets

Black Diamond Inc. CEO Peter Metcalf told Wall Street investors Tuesday that the company is exploring “strategic alternatives” for its Gregory Mountain Products business, which could including selling the brand. Metcalf, who was reporting preliminary fourth quarter results for more


New Black Diamond Inc. president tasked to grow omni-channel business; slated to succeed Metcalf as CEO by summer 2015

After restructuring staff and selling off its Gregory Mountain Products brand earlier this summer, Black Diamond Inc. unveiled its future path for the company on Monday. It includes new leadership, a reduction in hardgoods SKUs and establishing a robust, global omni-channel more


Black Diamond 3Q sales rise 16% on Poc Sports acquisition, income slips on expansion costs

Investments and growth bring in more money, but also more expenses, and the latter is especially true at the start. Black Diamond Inc. (Nasdaq:BDE) reported its revenue up 16 percent to $48.7 million in the third quarter 2012, compared to a year ago, primarily due to additional more

Black Diamond promises marketing push to ramp up apparel sell-through

Well-established outdoor hardgoods brands that flocked to the apparel world in recent years are finding that it takes a bit more marketing and branding to play in the crowded softgoods space. Case in point: Black Diamond, which debuted its entry into apparel a year ago. On more


Black Diamond to streamline some product categories; shuffles leadership

Black Diamond Equipment plans for a “very meaningful and substantial” reduction of its gear and equipment SKUs and could exit one or two product categories later this year as part of a restructuring plan first reported by SNEWS in mid-April. The latest changes, announced May 5 more


Black Diamond lays off key personnel in apparent restructure

Black Diamond has laid off employees at its U.S. headquarters in Salt Lake City as part of apparent restructuring at the company, SNEWS has learned. While the exact number isn’t available, at least a dozen people are suspected to have lost their jobs or are moving on, several more


Black Diamond Inc. President Zeena Freeman resigns over potential sale of company

Black Diamond Inc. President Zeena Freeman has resigned from the company, officials announced late Thursday. Freeman, a former Sony and Gap executive, who was named Black Diamond Inc. president less than a year ago (August 2014), had been slated to succeed current CEO Peter more