Precor posts 7 percent sales increase for Amer Sports
Amer Sports posted a 14-percent increase in company sales for the third quarter, saying its fitness segment, which includes Precor, had “good development” as sales increased by 7 percent and EBIT improved markedly.
For the July to September time period, total company net sales increased by 14 percent to EUR 466.9 million (USD $647.7 million), compared to EUR 410.6 million (USD $569.6 million) last year. In local currencies, net sales increased by 5 percent.
EBIT was EUR 55.8 million (USD $77.4 million) versus EUR 40.7 million (USD $56.4 million), including non-recurring expenses of EUR 3.5 million. Earnings per share totaled EUR 0.38 (USD $0.52), up from last year’s EUR 0.29 (USD $0.40).
Net cash flow from operating activities is a loss of EUR 85.0 million (USD $117.9 million) versus a loss of EUR 25.4 million (USD $35.2 million), reflecting primarily the seasonality in Winter Sports Equipment.
"In the third quarter, we continued to drive top-line growth and profitability. We improved gross profit percentage by three points and kept operating expenses under control. The progress was broad based: all business segments improved their EBIT margins,” said Heikki Takala, president and CEO of Amer Sports, in a statement.
For the quarter, the fitness segment’s net sales were EUR 52.6 million (USD $72.9 million) and grew 17 percent from EUR 44.8 million (USD $62.1 million). In local currencies, it was up 7 percent.
The Americas accounted for 67 percent of net sales, EMEA for 24 percent, and Asia Pacific for 9 percent. In local currency terms, EMEA increased by 27 percent and Asia Pacific by 7 percent. Sales in the Americas were at last year's level.
The fitness segment’s EBIT was EUR 2.8 million (USD $3.8 million) versus a loss of EUR 1.4 million (USD $1.9 million) in the same period last year. Higher gross margins contributed EUR 1.4 million (USD $1.9 million) to EBIT growth, and increased sales volumes contributed EUR 1.3 million (USD $1.8 million), it said. Operating expenses were down by EUR 1.0 million (USD $1.3 million) -- all in local currencies.
Amer Sports said commercial business, which includes clubs and institutions, was up in all regions. Sales of premium consumer equipment for home use continued to be sluggish, it added.
Looking ahead, Amer Sports said it expects its outlook for 2010 net sales to be approximately EUR 1.7 billion (USD $2.3 billion), up from EUR 1.5 billion (USD $2.0 billion) in 2009, and EBIT margin to be approximately 6 percent excluding non-recurring items.
(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 Oct. 28.)
Brunswick’s Life Fitness segment posts 9 percent sales increase
Brunswick Corp. (NYSE: BC), parent of Life Fitness and Hammer Strength, significantly narrowed its net loss and posted a 22-percent increase in sales for the third quarter.
The company reported net sales of $815.4 million, up from $665.8 million a year earlier.
Its operating earnings were $25.2 million, which included $12.2 million of restructuring, exit and impairment charges. In the third quarter of 2009, the company had an operating loss of $109.4 million, which included $28.8 million of restructuring, exit and impairment charges.
The company’s net loss was $7.2 million, or $0.08 per diluted share, compared with a net loss of $114.3 million, or $1.29 per diluted share, for the third quarter of 2009.
Brunswick said the diluted loss per share for the third quarter of 2010 included restructuring, exit and impairment charges of $0.14 per diluted share. The loss per diluted share for the third quarter of 2009 included $0.32 per diluted share of restructuring, exit and impairment charges, and a $0.24 per diluted share benefit from special tax items.
Fitness segment sales totaled $137.7 million, up 9 percent from $126.8 million in the year-ago quarter.
International sales, which represented 56 percent of total segment sales in the quarter, increased by 10 percent.
Operating earnings were $17.0 million, compared to $12.5 million in the third quarter of 2009, which included restructuring charges of $0.4 million.
Brunswick said the fitness segment’s global commercial equipment sales increased during the quarter, and were partially offset by a decline in U.S. consumer equipment sales. Higher operating earnings in the third quarter of 2010, when compared with 2009, reflect higher sales, lower material costs and increased fixed-cost absorption, it added.
Also, Brunswick’s board of directors declared an annual dividend on its common stock of $0.05 per share payable Dec. 15 to shareholders of record on Nov. 23.
Iconix’s Q3 revenue up 63 percent
A surge in licensed brand sales helped Iconix Brand Group (Nasdaq: ICON) post better-than-expected results for the third quarter. The company also said it was still on the lookout for acquisitions.
Fitness EM licenses the Danskin brand name for fitness equipment from Iconix's property, Triumph, formerly known as Danskin.,
Revenue at the company rose about 63 percent to $96.9 million versus $59.4 million for the third quarter of 2009.
Net income was $31.8 million, or $0.38 per share, compared to $20.4 million, or $0.29 per share, in the same period last year.
Iconix also raised its full-year 2010 revenue view to $323 million to $328 million from $305 million to $315 million. It also adjusted earnings estimates to $1.38 to $1.42 a share from $1.35 to $1.40 a share.
GSI’s Q3 loss widens
GSI Commerce (Nasdaq: GSIC) posted a wider-than-expected loss for the third quarter, saying it was hurt by higher operating expenses.
Its net loss widened to $18.6 million, or $0.28 a share, from a loss of $9.4 million, or $0.18 a share, in the year-ago period.
Revenue rose 49 percent to $284.1 million compared to $190.3 million.
Total costs and expenses for the quarter rose about 52 percent to $304.4 million.
Sports Club’s sales drop 2.3 percent
The Sports Club Company (Pink Sheets: SCYL) reported a 2.3-percent drop in third-quarter revenue. It owns and operates The Sports Club/LA in Los Angeles, Orange County and Beverly Hills in California and at Rockefeller Center in New York City.
For the quarter ended Sept. 30, its revenues were $13.0 million compared to $13.3 million for the same period last year.
Net loss was $478,000, or $0.02 per share, compared to a net loss of $542,000, or $0.02 per share, last year.
Town Sports’ Q3 sales decline
Despite narrowing its net loss, Town Sports International Holdings (Nasdaq: CLUB) sales for the third quarter dropped 6.1 percent.
It operates clubs through New England under the brand names New York Sports Clubs, Boston Sports Clubs, Washington Sports Clubs and Philadelphia Sports Clubs.
For the quarter ended Sept. 30, total revenue was $113.1 million versus $120.4 million in the same period last year.
Net loss for the quarter was $18,000, or $0.00 per share, compared to net loss of $1.5 million, or $0.07 per share, for 2009.
Revenue at clubs operated for over 12 months decreased 5.0 percent in Q3 2010 compared to Q3 2009.
Its total member count decreased 0.6 percent compared to June 30, 2010, and 0.2 percent compared to Sept. 30, 2009. Membership attrition averaged 3.8 percent per month in the quarter compared to 4.2 percent per month in 2009.
For the fourth quarter, the company said it expects revenue to be between $110.0 million and $111.0 million versus $114.3 million for Q4 2009. It also expects a net loss possibly up to $500,000, and loss per share to be in the range of $0.00 to $0.02 per share.
Q3 net sales for Champion parent up by nearly half
Hanesbrands (NYSE: HBI), parent of Champion, said its third-quarter net income rose 49 percent, helped by back-to-school sales and lower restructuring costs.
Net income increased to $61.3 million, or $0.63 per share, from $41.1 million, or $0.43 per share, last year.
Revenue rose 11 percent to $1.17 billion from $1.06 billion last year.
Hanesbrands said if the current high prices for commodities such as cotton persist, it might raise prices in the middle of 2011.
Looking ahead, the company narrowed its net income guidance for the year to $2.27 to $2.32 per share. Previous guidance was $2.25 to $2.35 per share. It expects revenue of $4.3 billion for the year.
The company said revenue could grow by a percentage in the high single digits to double digits depending on prices, sales volume and other factors. Hanesbrands said it expects earnings growth between 10 percent and 20 percent in 2011, consistent with its long-term goal.
Play It Again Sports parent declares cash dividend
Winmark (Nasdaq: WINA), parent of Play It Again Sports, has a quarterly dividend of $0.02 per share. It’s payable on Dec. 1 to shareholders of record on Nov. 10.
--Compiled by Wendy Geister
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