Outdoor products lead Q2 sales growth at Jarden
Jarden Corp. (NYSE: JAH), parent of Coleman, K2, Marmot and Volkl, reported second-quarter growth across all segments, led by its outdoor products unit that grew 8.5 percent -- the highest across segments.
For the three months ended June 30, 2010, net sales increased 21.9 percent, with organic growth of 8.7 percent, to $1.5 billion, compared to $1.3 billion for the same period in the previous year.
Its net income was $38.4 million, or $0.43 per diluted share, compared to $44.9 million, or $0.53 per diluted share, for the same period in 2009.
The company said it still expects long-term growth of between 3 percent and 5 percent, and sees 2010 as a moderate-growth year.
"Consumer demand has stabilized and is resuming moderate growth. The biggest difference in sentiment (compared with last year) is in people who are employed. They are now more secure and are back to spending as consumers," said Martin E. Franklin, chairman and CEO of Jarden, in a statement.
Amer Sports reports Q2 company, fitness segment losses
Sales increases from the apparel and footwear segment helped boost Amer Sports’ overall sales by 12 percent for the second quarter.
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.
Heikki Takala, Amer’s president and CEO, said in a statement, “An additional positive achievement is the amount of pre-orders received. After a good 2009/10 winter season, pre-orders in winter sports equipment for the next season are up by approximately 15 percent. In apparel and footwear, the order book for the fall/winter season also indicates faster sales growth than in the first half of this year.”
For April to June, winter and outdoor segment net sales totaled EUR 116.5 million (USD $154.6 million), up 9 percent over last year’s EUR 106.6 million (USD $141.5 million), and an increase of 4 percent up in local currencies. The breakdown of net sales by business area were: winter sports equipment, 9 percent; apparel and footwear, 49 percent; cycling, 22 percent; and sports instruments, 20 percent. EMEA accounted for 64 percent of net sales, the Americas for 21 percent, and Asia Pacific for 15 percent.
The company said the EBIT improvement of EUR 5.0 million (USD $6.6 million) resulted from improved gross margins of EUR 9 million (USD $11.9 million) and sales growth of EUR 2 million (USD $2.6 million), but was partly offset by a EUR 6 million (USD $7.9 million) increase in operating expenses (all in local currencies).
For the quarter, winter sports equipment segment sales dropped 11 percent to EUR 10.2 million (USD $13.5 million) versus EUR 11.4 million (USD $15.1 million) last year. In local currencies, the drop was 18 percent. Amer noted that the strongest growth, an increase of approximately 32 percent, was recorded in cross country skiing while alpine skiing increased by about 13 percent (all in local currencies).
Apparel and footwear sales were EUR 57.6 million (USD $76.4 million) up 17 percent from EUR 49.2 million (USD $65.3 million) last year, showing dynamic spring in-season orders. In local currencies, they were up 10 percent.
Amer said growth was particularly evident in footwear. Fall/winter pre-orders are indicating a faster sales growth in the second half of the year compared to the first half, it noted, adding that production capacities have been upgraded to support on-time deliveries.
Net sales for sports instruments, which includes Suunto, totaled EUR 23.6 million (USD $31.3 million) up 10 percent from last year’s EUR 21.4 million (USD $28.4 million), and were up 4 percent in local currencies. The main contribution came from Outdoor product categories, Amer said.
(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.)
Johnson Outdoors’ Q3 profit, revenue climbs
Johnson Outdoors (Nasdaq: JOUT) said its third-quarter net income climbed 15.6 percent on consumer spending.
For the three-month period that ended July 2, the company earned $10.4 million, or $1.09 per share, compared to $ 9 million, or $0.97 per share, in the same period last year.
Revenue rose nearly 8 percent to $124 million, up from $114.9 million last year.
"Outdoor recreational markets are recovering, and we have leveraged our leading brand equities to grow share in a highly competitive marketplace," Helen Johnson-Leipold, chairman and CEO, said in a statement.
Johnson Outdoors said revenues rose in its marine electronics division (up 17.9 percent) and outdoor equipment division (up 21.3 percent). Revenue from its watercraft division dropped 3.5 percent, and diving gear slipped by 9 percent.
Total company operating profit grew 26 percent to $13.4 million versus $10.6 million in the prior year quarter.
Johnson Outdoors’ brand portfolio includes Old Town, Ocean Kayak, Necky, Silva and Eureka, among others.
Garmin Q2 income falls; outdoor/fitness 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, up 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.
Crocs returns to Q2 profit
Crocs (Nasdaq: CROX) said it returned to a second-quarter profit as sales improved both in stores and online.
It earned $32.3 million, or $0.37 per share, versus a prior-year loss of $30.3 million, or $0.36 per share.
Revenue climbed 15 percent to $228 million from $197.7 million last year. Crocs said its sales improved across all channels -- rising 24 percent online, 20 percent at its retail stores and 12 percent to wholesale customers.
Looking ahead, Crocs said it expects to earn $0.22 per share to $0.24 per share in the third quarter on revenue of $205 million.
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 from $4.7 million a year ago. Per-share results were flat at $0.22 per share.
Net sales inched up 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.
Quiksilver exchanges $140 million of debt for equity
Quiksilver (NYSE: ZQK) said it was able to exchange debt for equity with Rhône, exchanging $140 million of its senior secured term loans for 31.1 million stock shares at an exchange price of $4.50 per share.
The outstanding balance of the Rhône senior secured term loans and associated accrued interest was approximately $165 million on Aug. 9.
With the $140 million exchange transaction completed, the company said it expects that its improved leverage profile will enable it to amend and extend its asset-based line of credit agreement in the Americas region under improved terms. It also expects to secure new term loan financing for the remaining principal amount of the Rhône term loans under considerably better terms than the credit markets permitted a year ago.
The company expects that the interest savings, even considering the additional new shares outstanding, will result in earnings accretion.
Backcountry.com parent’s Q2 sales up
Liberty Interactive Group (Nasdaq: LINTA), part of the Liberty Media Corp. and parent of Backcountry.com, reported a 6-percent increase in second-quarter revenue.
Revenue was $2.1 billion, and adjusted OIBDA increased 4 percent to $428 million, while operating income increased 3 percent to $274 million. The increase in revenue and adjusted OIBDA was primarily due to favorable results at QVC, it said.
The e-commerce businesses revenue increased 15 percent to $295 million for the quarter.
Adjusted OIBDA for the e-commerce businesses decreased 36 percent to $28 million for the quarter and operating income decreased by 74 percent or $23 million.
Outdoor Channel Q2 sales down 12 percent
Outdoor Channel Holdings (Nasdaq: OUTD), said its second-quarter net loss widened on a 16-percent drop in subscriber fees and a 25-percent drop in production services revenue.
For the quarter ended June 30, revenue was $16.8 million, a decrease of 12 percent, compared with $19.2 million in the corresponding period a year ago.
Its net loss was $1.2 million, or $0.05 per diluted share, compared to a net loss of $937,000, or $0.04 per diluted share, in the prior-year period.
--Compiled by Wendy Geister
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