Declining military orders dent CamelBak 3Q sales, profit

CamelBak reported lower sales and profit for the third quarter 2012, after a significant drop of military sales, particularly of its gloves, outweighed a rise in its bottle sales.
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CamelBak reported lower sales and profit for the third quarter 2012, after a significant drop in military sales, particularly of its gloves, outweighed a rise in its bottle sales.

The Petaluma, Calif.-based hydration and outdoor accessory brand saw its third-quarter revenue slip 4.3 percent to $36.7 million, compared to the same period a year ago. CamelBak, which is owned by Compass Diversified Holdings (NYSE:CODI), said its quarterly operating profit fell to $5.1 million versus $6 million a year ago.

Company Officials said the quarterly drop was in large part due to $3.9 million decline in its glove sales, which primarily go to the U.S. military, “resulting principally from a drawdown of U.S. combat troops during the period and the absence of sales from a direct contract with the U.S. military that was not in effect in 2012.”

Military sales still accounted for 38 percent of CamelBak’s quarterly sales, albeit down from 45 percent a year ago.

Smaller quarterly sale slips came from CamelBak’s accessories (down $1.1 million) and hydration systems (down $100,000), although officials didn’t break down how much of these losses came from the military or consumer end.

The bright spot for CamelBak came in bottles, which gained $3.3 million in sales during the quarter, “principally due to the expansion of offerings in bottles, such as the introduction of Eddy and the continued expansion in its customer base, including new and existing customers.”

Hydration systems and bottles represented about 86 percent of sales in the third quarter versus 74 percent a year ago.

Parent company Compass Diversified Holdings detailed CamelBak’s figures in its Nov. 7 earnings report. Overall, the public company owns a collection of brands that sell everything from bike parts to furniture.

--David Clucas

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