Outdoor financials: Amer 3Q up on early wintersports sales; plus Deckers earnings shine

Strong pre-ordering and earlier delivery dates for its Atomic, Salomon and Arc'teryx wintersports equipment and apparel helped boost third-quarter sales for parent company Amer Sports. Plus Deckers revenue jumps on Ugg and Sanuk sales.
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Amer Sports (HEL:AMEAS) reported robust third-quarter 2011 revenue growth attributed to strong pre-ordering and earlier deliveries of its wintersports equipment and apparel.

The Finland-based parent company of Arc’teryx, Atomic, and Salomon reported third-quarter revenue up 20 percent to EUR 559.2 million (USD $792.4 million), compared to the same period a year ago. Amer’s quarterly net income increased 16.7 percent to EUR 53.3 million (USD $75.5 million).

In the company’s local euro, a 39-percent increase in wintersports equipment sales, 38-percent gain in apparel sales, and 35-percent rise in footwear sales led the revenue growth.

Amer’s total winter and outdoor segment revenue rose 32 percent to EUR 395.7 million (USD $560.7 million) – up 32 percent versus a year ago. “Deliveries of pre-orders started three to four weeks earlier than in 2010, which impacted the third quarter positively, but there is no change in the full-year outlook,” company officials said in the earnings release Oct. 27.

In Amer’s other segments, fitness rose 8 percent and ball sports dropped 6 percent.

(Conversion of euro into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Oct. 27, 2011.)

Ugg, Sanuk boost Deckers

Deckers Outdoor Corp., reported a jump in third-quarter 2011 earnings and profits on higher Ugg footwear sales and its acquisition of the Sanuk brand.

The Goleta, Calif.-based shoemaker, which also owns Teva, reported revenue up 49.1 percent to $414.4 million for the third quarter, compared to $277.9 million a year ago. Deckers’ net income leaped 48 percent to $62.5 million, or $1.59 per diluted share, versus a net income of $42.1 million, or $1.07 per diluted share a year ago.

By brand, Ugg led the way for Deckers – up 47.3 percent to $376.7 million. Teva footwear sales rose 7.3 percent to $14.7 million. Sanuk sales – the first time included in Deckers’ sales after its acquisition of the brand July 1, 2011 – came in at $15.6 million. Combined net sales of the company's other brands decreased 11.7 percent to $7.4 million. The decrease was primarily due to the phasing out the Simple brand, which will be discontinued by the end of the year.

In its retail stores, which now total 37, Deckers reported same-store sales up 15.4 percent for the third quarter, while e-commerce sales rose 18.3 percent.

Looking ahead, company officials raised projections, expecting fourth-quarter revenue to increase by 29 percent and full-year 2011 revenue to rise 33 percent, versus previous projections of 22 percent and 26 percent growth, respectively.

– Compiled by David Clucas

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