Outdoor financials: Quiksilver to sell Rossignol unit for $147.6 million, plus Gander Mountain, LaCrosse

Quiksilver reported it would sell its Rossignol unit for $147.6 million, Gander Mountain reported a net loss for Q2, and LaCrosse Footwear received a $3.2 million order from the Marines.
Author:
Updated:
Original:

Quiksilver to sell Rossignol unit for $147.6 million

Quiksilver (NYSE: ZQK) said it has received a binding offer of $147.6 million for the acquisition of 100 percent of the Rossignol Group from Chartreuse & Mont Blanc.

The offer is comprised of 75 percent cash and 25 percent from a seller's note. The deal, which is subject to a financing condition, is expected to close in the fall.

Headed by former Rossignol CEO Bruno Cercley, Chartreuse & Mont Blanc is majority owned by the Australian financial services company Macquarie Group (ASX: MQG) and supported by a non-voting minority interest by Jarden Corp. (NYSE: JAH). It is named after the two mountain ranges that are home to Rossignol's two key brands: Rossignol is nestled in the shadow of the Chartreuse mountain range and Dynastar in the shadow of Mont Blanc.

The proposed transaction includes the sale of the Rossignol, Dynastar, Look, and Lange brands of winter sports equipment and apparel. The company said the sale is consistent with its intention, announced in January 2008, to sell the Rossignol Group to reduce its exposure to the wintersports equipment manufacturing business.

Robert B. McKnight, Quiksilver's chairman, CEO and president, said in a statement, "This offer is a compelling transaction for Quiksilver and represents the culmination of a thorough sale process. Once completed, we can fully concentrate our efforts on our core apparel and footwear brands Quiksilver, Roxy and DC."

Quiksilver added that it plans to use the money to pay off debt.

Quiksilver first bought Rossignol in 2005 for $320 million in cash and stock. By the spring of last year, analysts had started to say that the addition of Rossignol was disappointing and that results from the ski gear unit was dragging down the overall stock price.

Citigroup analyst Kate McShane said in a research note the sale price is "roughly in-line" with her expectations, and noted that the deal comes six months after management put the business back up for sale, amid speculation that a sale would not occur.

However, she maintained a "Hold" rating and $10 price target on the stock, noting that she still sees challenges in apparel manufacturing through the rest of 2008, particularly from ongoing U.S. macroeconomic pressures and a potential slowdown in Europe.

Shares of Quiksilver rose $0.46, or 5.9 percent, to $8.22 in late morning trading on Aug. 27.

Quicksilver is scheduled to report its third-quarter financial results on Sept. 4.

Gander Mountain reports net loss for Q2

Tighter consumer spending on discretionary items was to blame as Gander Mountain (Nasdaq: GMTN) posted a second-quarter loss.

Gander Mountain reported a net loss of $4.9 million, or $0.20 per share, compared with a loss of $9.7 million, or $0.48 per share, a year earlier.

Revenue rose 16.8 percent to $252.9 million. Comparable-store sales decreased 11.7 percent in the second quarter.

The 2008 period includes $39.7 million in revenue due to the expansion of the company's direct marketing business through Overton's.

"As anticipated, second quarter results reflect continuing economic pressure on consumer purchases of discretionary items, and we expect these conditions to persist in the second half of fiscal 2008," President and CEO Mark Baker said in a statement.

Gross profit increased 30.9 percent to $67.5 million for the second quarter. As a percent of sales, gross profit increased 288 basis points to 26.7 percent, reflecting both improvement in business mix relating to higher-margin direct sales and increased retail product margins, the company said.

Selling, general and administrative expenses (SG&A) for the second quarter increased 21.1 percent to $66.9 million, and included $14.6 million in operational expenses from the direct marketing segment. As a percent of sales, SG&A for the retail segment improved 97 basis points over the comparable quarter last year.



LaCrosse Footwear receives $3.2 million order from Marines


LaCrosse Footwear (Nasdaq: BOOT) said its Danner subsidiary received a $3.2 million delivery order as part of a new contract awarded by the Department of Defense.

As part of the awarded contract, Danner will deliver the Danner Marine Temperate boot out of its Portland, Ore., facility within the next 60 days.

LaCrosse said the contract represents the company's largest one-time delivery order for 2008, surpassing the previous $3 million delivery order in June for the Mountain Cold Weather Boot.



For more information about any public company on this page or its financial reports, as well as to view stock prices updated every 15 minutes, visit the SNEWS® Stock Market Updates. Click on: www.snewsnet.com/cgi-bin/snews/stock_report.html.

Related

Outdoor financials: Quiksilver completes sale of Rossignol ski unit to Chartreuse & Mont Blanc, plus Crocs, Gander Mountain, LaCrosse

Quiksilver completes sale of Rossignol ski unit to Chartreuse & Mont Blanc Quiksilver (NYSE: ZQK) said the sale of its Rossignol ski gear business to Chartreuse & Mont Blanc has closed for EUR 30 million (USD $37.5 million) in cash and 10 million euro note (USD $12.5 million). ...read more

Outdoor financials: Columbia Sportswear reports rises in Q4, FY06 earnings, plus Johnson Outdoors, VF, Jarden, Quiksilver/Rossignol, Gander Mountain

Columbia Sportswear reports rises in Q4, FY06 earningsFourth-quarter profit for Columbia Sportswear (Nasdaq: COLM), parent of Mountain Hardwear and Montrail, rose 4.9 percent on an increase in sportswear and outerwear sales. The company earned $38.4 million, or $1.06 per share, ...read more

Outdoor financials: Wellman takes $24 million hit in settlement, plus Rossignol, West Marine

Wellman takes $24 million hit in settlementWellman (NYSE:WLM) is taking a pretax hit of $24 million in the second quarter of 2005 to cover the cost of a settlement with 33 purchasers of polyester staple fiber. The money will also cover expected future costs to defend or settle ...read more

Outdoor financials: LaCrosse selects Midwest distribution location, plus Quiksilver/Rossignol, Garmin, Johnson Outdoors

LaCrosse selects Midwest distribution location LaCrosse Footwear (Nasdaq: BOOT) plans to develop a new distribution center in the greater Indianapolis, Ind., area, consolidating its two distribution centers in La Crosse, Wis., into one facility. Approximately 70 percent of its ...read more

Outdoor financials: Analyst forecasts strong year for Deckers, plus Quiksilver/Rossignol, LaCrosse, VF Corp.

Analyst forecasts strong year for Deckers An analyst raised his target on Deckers Outdoor's (Nasdaq: DECK) stock, saying the company looks set to post solid results in the second half of the year. It is the parent of Teva, Ugg and Simple. Piper Jaffray analyst Jeffrey ...read more

Outdoor financials: Dick's Sporting Goods shares hit 52-week low, plus LaCrosse, Columbia Sportswear, Luxottica, Quiksilver

Dick's Sporting Goods shares hit 52-week low Shares of Dick's Sporting Goods (NYSE: DKS) hit a new 52-week low amid a difficult retail environment. Shares fell $0.32 to close at $18.05, after earlier trading to a new low of $17.84. The stock had traded between $18.33 and $36.77 ...read more

Outdoor financials: Sospenders sells to K2, plus Johnson Outdoors, Gander Mountain, Dick's

WaterMark sells Sospenders to K2 StearnsWaterMark has sold all the assets of its Sospenders inflatable personal flotation device (PFD) business to K2 Inc. Sospenders will now operate under the Stearns division. K2 Stearns will honor the published warranty for the SOS products the ...read more

Outdoor financials: Wolverine stock drops with threat of EU footwear duties, plus Keen Footwear, Cabela's, Quiksilver/Rossignol, LaCrosse

Wolverine stock drops 4.5 percent after downgradeShares of Wolverine World Wide (NYSE: WWW), parent of Merrell, dropped $1 after an analyst downgraded the stock, saying that new European Union taxes on footwear imports will hurt the company's profit. Jim Duffy of Thomas Weisel ...read more

Outdoor financials: Quiksilver president resigns, may attempt Rossignol buyout, plus Jarden, Kellwood, Wolverine, Dick's, GSI Commerce

Quiksilver president resigns, may attempt Rossignol buyout Bernard Mariette has resigned as president of Quiksilver (NYSE: ZQK) to pursue other interests and is reportedly looking to buy the company's Rossignol unit. Chairman and CEO Robert McKnight will take the president title. ...read more