Outdoor financials: Quiksilver reports wider Q2 loss, plus Garmin, Johnson Outdoors, VF Corp., Collective Brands

Quiksilver reported a wider Q2 loss, Garmin's board approved a new buyback and dividend, Johnson Outdoors laid off 50 citing slow sales, an analyst called VF's acquisition of a premium sportswear company a good fit, and Collective Brands' Q1 profit fell on a charge.
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Quiksilver reports wider Q2 loss

Quiksilver (NYSE:ZQK) reported a wider loss in its second quarter due to a higher shortfall from discontinued operations.

For the quarter ended April 30, the company recorded a loss of $206.2 million, or $1.59 per share, compared with a loss of $4.8 million, or $0.04 per share in the prior-year quarter.

The latest quarter's results included a loss of $1.88 per share from discontinued operations stemming from an impairment charge. The Rossignol winter sports equipment and apparel business and the golf equipment business were both reported as discontinued operations. Quiksilver sold its golf equipment business in December and has begun the process to sell the Rossignol unit.

The company said it earned $0.30 per share from continuing operations.

Revenue rose 15 percent to $596.3 million from $520.4 million. Revenue grew in every geographic region, rising 5 percent in the Americas and 23 percent in Europe, the company said.

Quiksilver said its expects profit from continuing operations to fall slightly in fiscal 2008.

The company reported profit of $0.90 per share in its fiscal year ended in October 2007.

It added its revenue from continuing operations would likely grow about 10 percent, implying fiscal 2008 revenue of about $2.67 billion. In 2007, the company reported revenue of $2.43 billion.

After the news, Quiksilver shares declined $0.26, or 2.8 percent, to close $9.10 on June 6.

Garmin board OKs new buyback, dividend

Garmin (Nasdaq: GRMN) said that its board approved a buyback of up to 10 million of the company's common shares.

It said the purchases may be made from time to time on the open market or in negotiated transactions. The program expires on Dec. 31, 2009.

The company said it recently completed a repurchase program approved in February for 5 million shares.

Its board also approved an annual dividend of $0.75. The dividend will be paid Dec. 15 to shareholders of record as of Dec. 1.



Johnson Outdoors lays off 50, citing slow sales


Due to a drop in military sales, Johnson Outdoors (Nasdaq: JOUT) said it would cut its work force by 50 positions in Binghamton, N.Y.

The company said it has notified affected employees and will offer severance packages, outplacement assistance and other services.

Johnson Outdoors, which also sells military tents, said it expected military sales to return to historical levels, which peaked in 2004 at $64 million. Previously, the company said, military sales were between $20 million and $25 million.

But, rather than returning to that level, orders for the tents declined more than expected, it noted. For 2008, Johnson Outdoors said it now expects military sales between $17 million and $20 million.

The company said ordering was affected by lower revenue on the transition to more permanent housing for deployed U.S. troops and an impasse in Congress on this year's supplemental defense spending bill which helps the military determine how much to spend.

The company has about 1,400 employees in total; in Binghamton, there are 163 employees, it said.

Analyst calls VF acquisition of premium sportswear company a good fit

A Robert W. Baird analyst said VF Corp.'s (NYSE: VFC) acquisition of one-third of the capital stock of Mo Industries, which owns the Splendid and Ella Moss women's sportswear lines, is a good fit for the company.

Under the agreement, VF can buy the rest of the capital stock in the early part of 2009. The terms of the deal were not disclosed.

Analyst Mitch Kummetz said in a note to investors that the newly acquired brands "seem to fit well with the company's existing contemporary brands and should afford VF additional growth opportunities within the coalition." He also noted that sales of Splendid and Ella Moss have tripled since 2004.

Collective Brands Q1 profit falls on charge

Collective Brands (NYSE:PSS), parent of Saucony and Hind, posted a lower first-quarter profit because of a large charge tied to a recent court decision.

In the 13 weeks ended May 3, it earned $19.7 million, or $0.31 per share, compared with $38.9 million, or $0.59 per share, during a corresponding period a year earlier.

The most recent figure included a $30 million, or $0.36 per share, pre-tax charge to cover potential losses related to a court decision last month.

Revenue jumped to $932.4 million from $728.6 million.

The charge relates to a $304.6 million verdict against the company on May 5 in a dispute with adidas, which Collective Brands said it believes was "excessive, unjustified and the product of legal error." The company said it is fighting the verdict and that resolving the litigation could lead to additional losses or a reversal of the loss.



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