Outdoor financials: Amer 3Q earnings up on apparel; plus strong results from Under Armour and Teva

Amer Sports beat the wintersports equipment blues with strong apparel sales at Arc'teryx and Salomon. Plus Teva footwear 3Q sales jump, and Under Armour reports its tenth straight quarter of revenue gains greater than 20 percent.
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Amer Sports, parent to Salomon, Atomic and Arc’teryx, is beating the wintersports equipment blues with apparel.

The Finnish diversified outdoor, sporting goods and fitness company reported revenue up 8 percent to EUR 601.9 million ($780.8 million) for the third quarter 2012, despite a 12 percent drop in its wintersports equipment business.

The saving grace for Amer came in outdoor and wintersports apparel sales, which soared 37 percent in the third quarter, along with strong performances from its sporting goods and fitness brands, including Wilson and Precor. Amer’s outdoor and wintersports footwear sales edged up 2 percent.

Company-wide, Amer’s quarterly net profit improved slightly to EUR 55.9 million ($72.5 million) versus EUR 55.3 million (71.7 million) a year ago.

By region, Amer saw its strongest gains in Asia Pacific, up 23 percent, followed by the Americas up 16 percent, while Europe saw sales slip 1 percent.



Teva 3Q sales up for Deckers


It’s been a flip-flop earnings season for outdoor footwear brand Teva.

After reporting a 15 percent decline in sales during second quarter earlier this year, Teva rebounded in the third quarter with a 22 percent gain to $17.9 million. International sales, which had dragged performance in the pervious quarter, this time shined on both the wholesale and distributor level, particularly with the brand’s launch in Japan, officials said.

Teva parent Deckers, which also owns the Sanuk and Ugg brands, reported companywide sales down 9 percent to $376.4 million, while its net income dropped to $43.1 million, versus $62.5 million a year ago.

Deckers President and CEO Angel Martinez said the company is trying to find its footing on pricing, as it previously chose to raise prices this winter (to cover higher production costs), only to see the warm winter decrease consumer demand and price-value expectations. He said the company will pass on recent lower production costs on select styles to retailers and consumers this year to try and right the ship.

The recent struggles led Deckers to lower its revenue expectations for full-year 2012, now predicting a 5 percent gain, verses the previous forecast of a 14 percent increase. “Teva brand sales are expected to be slightly down” in that forecast, officials said.



Under Armour 3Q revenue up 24 percent


Under Armour continued to churn out impressive results, reporting its tenth consecutive quarter of revenue gains greater than 20 percent.

The Baltimore-based athletic wear company reported revenue up 24 percent to $575 million for the third quarter 2012 with gains across the board in apparel and footwear. Under Armour’s quarterly net profit came in at $57 million, or 54 cents per diluted share, versus a profit of $46 million, or 44 cents per share, a year ago.

The company’s direct-to-consumer sales have risen 31 percent year-over-year and now represent 24 percent of net sales, officials said. Under Armour CEO Kevin Plank said the company continues to see opportunity to grow the brand further by focusing on the women’s category with it sports bras and other apparel.

Officials raised Under Armour’s full-year 2012 revenue projection to $1.82 billion, representing the higher end of its previous estimated revenue range.

--David Clucas

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