Outdoor financials: Columbia 2Q revenue up, but loss widens; plus Jarden, Deckers and Puma earnings

Columbia saw its second-quarter 2011 revenue rise 21 percent, yet its loss widened on increased expenses. Deckers also reported higher revenue, but a loss, while Jarden and Puma were up with both revenue and profit.
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Columbia Sportswear Co. (Nasdaq:COLM) saw its second-quarter 2011 revenue rise, but net loss widen on increased expenses and inventory levels.

The Portland-based parent company of Mountain Hardwear, Montrail and its namesake brands, reported second-quarter revenue up 21 percent to $268 million, compared to $221.8 million from the same period a year ago.

But Columbia’s quarterly net loss widened to 13.6 million, or a loss or $0.40 per diluted share, compared to a net loss of $10.6 million, or a loss of $0.31 per diluted share a year ago.

The increased expenses come as the company invests more into technology for future apparel and gear. It also faced higher inventory levels – up 36 percent from a year ago to $422 million as of June 30, 2011, due to excess fall 2010 items, extra spring 2011 product, and an early stock ready for Fall 2011.

By brand, company officials said revenue growth leaders included a 20-percent rise in Columbia to $239.1 million, a 24-percent gain in Mountain Hardwear to $22.7 million and a 106-percent jump in Sorel to $3.7 million.

By region, second-quarter U.S. revenue grew 4 percent to $129 million, driven primarily by a 39-percent increase in direct-to-consumer sales, partially offset by an 8-percent decline in wholesale sales. Revenue in the company’s Latin America/Asia Pacific region grew 48 percent to $76.6 million, while sales in the company’s Europe/Middle East/Africa region rose 39 percent to $53.6 million.

By type of product category, sportswear revenue increased 12 percent to $136.2 million, outerwear rose 43 percent to $62.1 million, footwear gained 29 percent to $50 million, and accessories and equipment increased 11 percent to $19.7 million.

Columbia’s board of directors also approved a dividend of $0.22 per share, payable Sept. 1, 2011 to shareholders of record on Aug. 18, 2011.

Marmot, Coleman boost Jarden’s 2Q results

Favorable weather helped fuel sales of Jarden Corp.’s (NYSE:JAH) outdoor brands, including Marmot and Coleman, leading to higher second-quarter 2011 earnings.

The Rye-N.Y.-based diversified products company reported second-quarter revenue of nearly $1.7 billion – up 8 percent from the same period a year ago. The company’s outdoor segment led the revenue growth – up 11 percent to $772.8 million, representing 46 percent of total company sales.

Jarden’s quarterly net income rose to $73.9 million, or $0.83 per diluted share, compared to net income of $38.4 million, or $0.43 per diluted share, for the same period in 2010. The sharp increase was primarily due to acquisitions and tax benefits for 2011, versus acquisition costs for 2010.

"We completed our long-term global strategic planning meeting last week and we believe that we are on track to achieve our goal of $5 adjusted earnings per share by the end of 2014,” Jarden Executive Chairman Martin Franklin said in a statement.

“These results were driven by excellent sales in our Outdoor Solutions segment and a strong overall performance in our Consumer Solutions segment,” Jarden CEO James Lillie said. Retail sales “continued to improve in June, after a soft start to the quarter, and this positive momentum has continued through July, helped by favorable weather particularly in the United States."

Deckers 2Q revenue up, but swings to loss

Deckers Outdoor Corp. (Nasdaq:DECK) reported higher revenue, but swung to a loss for the second quarter 2011 on increased transition and retail investment expenses.

The Goleta, Calif.-based shoe company, parent to Teva and Ugg, saw its revenue rise 12.5 percent to $154.2 million, compared to $137.1 million during the same period a year ago. The figures do not include Deckers’ acquisition of the Sanuk brand, which closed on July 1, 2011.

Deckers swung to a net loss in the second quarter, losing $7.3 million, or a loss of $0.19 per diluted share, compared to a gain of $9 million, or $0.23 during the second quarter 2010.

Company officials said the loss was due to increased expenses including a transition to wholesale operations (previously handled by international distributors) in the United Kingdom, Belgium, Luxembourg and the Netherlands, opening 11 new retail stores, and other infrastructure investments. In fact, the company’s retail sales more than doubled – up 102 percent to $20.1 million, with same store sales rising 23.6 percent. E-commerce sales rose 10.3 percent to $5.7 million.

Teva brand sales increased 29.1 percent to $40.3 million, spurred by light hiking boots and multisport shoe sales, while sandal sales declined in the United States, company officials said.

Deckers’ inventory rose 74 percent to $210 million as it loaded up on fall orders and stocked warehouses to support its above-mentioned wholesale business model in Europe.

Looking ahead, company officials raised Deckers’ full-year 2011 revenue gain projection to 26 percent, including an additional $20 million expected from the Sanuk brand. Teva sales are expected to rise by about 20 percent in 2011.

Puma 2Q revenue, profit up

German sportswear and footwear giant Puma reported second-quarter revenue of EUR 673.5 million (USD $969 million) – up 14.1 percent currency adjusted, or up 9.4 percent in constant Euros. Net income rose EUR 37.6 million ($54 million), versus EUR 34 million (USD $49 million) a year ago.

By product category, Puma’s footwear sales rose 16.2 percent to EUR 352.6 million (USD $507 million), apparel increased 10.7 percent to EUR 224.3 million (USD $323 million) and accessories gained 15 percent to EUR 96.7 million (USD $139 million). Puma’s running products in footwear and apparel showed the most significant growth, company officials said.

By region, the company’s Americas region revenue grew 16.9 percent to a currency-adjusted EUR 226 million (USD $325 million), Asia grew 20.1 percent to EUR 158 million (USD $227 million) and Europe’s sales grew 9.2 percent to EUR 290 million (USD $417 million).

(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 July 28, 2011.)

-- Compiled by David Clucas



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