Amer Sports reports Q2 company, fitness segment losses
Amer Sports reported a 12-percent increase in second-quarter sales, but said the fitness segment, which includes Precor, was still hampered by a “sluggish” U.S. market.
For April to June, the company’s net sales were EUR 317.5 million (USD $421.5 million) versus EUR 284.7 million (USD $377.9 million) last year. In local currencies, net sales increased by 5 percent.
EBIT was a loss of EUR 16.9 million (USD $22.4 million) compared to a loss of EUR 29.4 million (USD $39 million) in the same period last year. Earnings per share totaled a loss of EUR 0.15 (USD $0.19) versus a loss of EUR 0.26 (USD $0.34) last year.
For the quarter, net sales for the fitness segment, which includes Precor, totaled EUR 47.1 million (USD $62.5 million), up 11 percent from EUR 42.4 million (USD $56.2 million) last year. In local currencies, it was up 5 percent.
EBIT was a loss of EUR 3.7 million (USD $4.9 million) versus a loss of EUR 2.2 million (USD $2.9 million) last year. The company said EBIT declined mainly due to increased warranty costs totaling EUR 2 million (USD $2.6 million). This was partly offset by sales growth.
Of the fitness segment, Amer said with credit markets continuing to be tight and consumer spending uncertain, most clubs and institutions continued to postpone their expansion plans. Sales of consumer equipment continued to suffer from the broader trend of reduced discretionary spending, it added. Financial weakness among specialty fitness dealers, the primary distribution channel for premium home equipment, magnified market challenges, it said.
Looking ahead, Amer Sports said it expects 2010 net sales to be EUR 1.7 billion (USD $2.2 billion) and EBIT margin to improve to the mid-single-digit level.
(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Aug. 5.)
Gaiam Q2 sales drop 6.7 percent
Hit by a weakening consumer environment, Gaiam (Nasdaq: GAIA) reported a 6.7-percent drop in sales for the second quarter.
Net revenue was $56.4 million for the quarter ended June 30 versus $60.5 million in the same quarter last year.
Net loss was $0.5 million, or $0.02 per share, compared to a net loss of $1.0 million, or $0.04 per share, during the same quarter last year.
Gross profit decreased to $28.9 million, or 51.3 percent of net revenue, from $31.4 million, or 52.0 percent of net revenue, during the comparable quarter last year.
Garmin Q2 income falls; fitness/outdoor unit sales up 32 percent
Despite increases in its business segments, Garmin’s (Nasdaq: GRMN) second-quarter net income fell on currency exchange losses and higher expenses mainly from the company moving its incorporation to Switzerland from the Cayman Islands.
For the three months ended June 26, the company earned $134.8 million, or $0.67 per share, down 17 percent from $161.9 million, or $0.81 per share, in the same period a year earlier.
Adjusted earnings were $0.85 per share in the latest quarter, excluding the effect of foreign currency translation losses and other items.
Revenue rose 9 percent to $728.8 million from $669.1 million.
All of Garmin's segments had increases in revenue during the quarter, with the company's outdoor and fitness business a standout. Revenue in the unit grew 32 percent to $143 million.
Revenue at Garmin's automotive and mobile segment rose 2 percent to $447 million. Its marine segment had a 23-percent revenue increase to $74 million, and revenue in its aviation unit inched up 1 percent to $65 million.
Looking ahead, Garmin is forecasting full-year adjusted earnings of $2.75 to $3.15 per share on revenue of $2.8 billion to $3 billion.
Big 5 posts flat Q2 results
Big 5 Sporting Goods (Nasdaq: BGFV) reported second-quarter sales and earnings growth roughly flat with the year-ago period, as a sluggish economy and unseasonably cool weather in many of the its markets curbed shoppers' spending.
Its earnings rose slightly to $4.8 million for the three months ended July 4, up from $4.7 million a year ago. Per-share results were flat at $0.22 per share.
Net sales inched up, rising to $219.8 million from $216 million as a result of two new store openings, it said. One of those new stores is intended to replace a location slated for closure. Sales at stores open at least a year dipped 0.5 percent.
For the full year, the company expects sales at established stores to be flat to up in the low-single digits and forecast earnings of $0.27 to $0.34 per share.
Also, the company declared a quarterly cash dividend of $0.05 per share, which will be paid Sept. 15 to stockholders of record as of Sept. 1.
Sports Club widens Q2 loss
The Sports Club Company (Pink Sheets: SCYL), which operates clubs under The Sports Club/LA name, reported a 4-percent drop in sales and also widened its loss for the second quarter.
Revenues for the quarter ended June 30 were $13.5 million, compared to $14.0 million for the same period last year.
Its net loss was $1.1 million, or $0.05 per basic and diluted share, compared to a net loss of $315,000, or $0.01 per basic and diluted share, in the same period last year.
Costco same-store sales up 6 percent in July
Costco (Nasdaq: COST) said sales at stores open at least one year rose 6 percent in July, helped by fuel sales and international revenue.
Same-store sales rose 4 percent in the United States and 14 percent internationally. Higher gas prices helped results, the company said.
Total sales for the four weeks ended Aug. 1 rose 8 percent to $5.86 billion from $5.42 billion last year.
--Compiled by Wendy Geister
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