Royal Robbins posts 28.6 percent sales increase for Phoenix parent
Net sales for the Phoenix Footwear Group (Amex: PXG) increased 6.4 percent, boosted by a 28.6 percent increase in Royal Robbins net sales. Total sales were $36.5 million versus $34.3 million for the third quarter of fiscal 2005.
The company's net income for the third quarter was $343,000, or $0.04 per share, compared to net income of $981,000, or $0.12 per share. On a trailing 12-month basis, net income increased 158.3 percent to $3.1 million, compared to $1.2 million a year ago.
Gross margin in the third quarter of fiscal 2006 was 36.0 percent, compared to 36.7 percent in the third quarter of 2005. Operating costs increased to $11.1 million, compared to $9.8 million in the third quarter of fiscal 2005.
Operating income for the third quarter was $2.1 million, compared to operating income of $2.8 million in the third quarter of fiscal 2005. EBITDA for the third quarter was $3.0 million, compared to EBITDA of $3.7 million in the third quarter of fiscal 2005.
Phoenix said third-quarter net sales for Royal Robbins continued to be very strong reaching $9.5 million, an increase of 28.6 percent, compared to $7.4 million a year ago. The company said the move to direct sales in Canada earlier in the year continued to benefit the brand's sales and margins. Royal Robbins continues to see healthy sell-through in all of its retail accounts, particularly at REI, and the long-term outlook for the brand is very positive, it reported. However, growth is expected to be moderate somewhat through the first half of 2007 due to the closing of the Dick's Sports and Academy Sports accounts, which took place earlier in the year.
Net sales for H.S. Trask decreased 41.6 percent to $1.1 million in the third quarter, compared to $1.8 million a year ago. The brand experienced higher closeout sales as a result of inventory reduction initiatives including moving out of older product lines. During September, the company hired David Pompel as president of the division.
Results for Phoenix's other brands included: Net sales from the Tommy Bahama Footwear brand totaled $1.3 million, or 3.5 percent of total net sales. Chambers' net sales for the third quarter of fiscal 2006 increased 38.7 percent to $13.5 million, compared to $9.7 million for the third quarter of fiscal 2005. Altama's net sales for the third quarter of fiscal 2006 decreased 39.0 percent to $3.8 million, compared to net sales of $6.2 million for the third quarter of fiscal 2005. SoftWalk net sales increased 3.0 percent to $3.1 million, compared to $3.0 million for the third quarter of fiscal 2005. Trotters sales increased 1.2 percent to $4.3 million, compared to $4.2 million for the same quarter a year ago.
Johnson Outdoors narrows Q4 loss
Johnson Outdoors (Nasdaq: JOUT) narrowed its fiscal fourth-quarter loss as sales to the consumer market offset a drop-off in military tent sales. It is the parent of various outdoor brands, including Ocean Kayak, Necky, Old Town, and Eureka tents.
The loss narrowed to $924,000, or $0.10 per share, from a loss of $3.4 million, or $0.39 per share, during the same period a year ago. Revenue grew 4 percent to $80.3 million from $77.1 million.
The company said fourth-quarter sales are usually weakest due to slower sales of seasonal outdoor recreation products.
Johnson said outdoor equipment revenue dropped 16 percent, due to a 57 percent decline in military tent sales. Commercial tent sales fell slightly due to lower inventory caused by a flood in the company's tent manufacturing facility in Binghampton, N.Y.
Those declines were countered by increases in revenue from watercraft, marine electronics and diving equipment. Watercraft positive momentum continued as double-digit growth in international paddlesport revenues drove sales 4 percent ahead of last year's strong fourth-quarter results.
Johnson said it was one of seven vendors to receive a multi-product military contract, but received no orders under that contract. It plans to bid for more contracts and expects fiscal 2007 military sales to be between $25 million and $30 million.
For the year, net income grew 23 percent to $8.7 million, or $0.95 per share, from $7.1 million, or $0.81 per share last year. Revenue climbed 4 percent to $395.8 million, from $380.7 million last year.
Gander Mountain back in the black for third quarter
Gander Mountain (Nasdaq: GMTN) said it swung to a profit in the fiscal third quarter on better pricing and more sales of company-branded merchandise.
Gander reported net income the quarter ended Oct. 28 of $2 million, or $0.14 per share, including a gain of $1.4 million from an insurance settlement. A year ago, the company posted a loss of $7.5 million, or $0.53 per share.
Sales rose 15 percent to $246.5 million from $214.6 million last year. Same-store sales rose 7.4 percent in the quarter.
Gander Mountain said customers bought more products from brands owned by Gander, and it also saw better pricing of clearance merchandise during the quarter.
In the third quarter of fiscal 2006, Gander Mountain opened five new stores, bringing the total to 105 stores in 22 states.
Dick's profit jumps 86 percent
For the fiscal third quarter, Dick's Sporting Goods (NYSE: DKS) reported an 86 percent surge in profit on a 22 percent increase in revenue.
For the quarter ended Oct. 28, Dick's earned $7.8 million, or $0.14 per share, compared with $4.2 million, or $0.08 per share, for the same quarter in 2005. Revenue rose to $708.3 million from $582.7 million in the year-ago period. Analysts had expected a profit of $0.05 per share on $679.2 million in revenue. Same-store sales rose 8.9 percent.
Dick's said it expects to post a fourth-quarter profit of $1.13 to $1.16 per share, while same-store sales are expected to increase about 2 percent to 3 percent.
For the full year 2006, Dick's upped its profit guidance to a range of $1.95 to $1.98 per share, including $0.26 in stock-option expenses. The company had previously expected to earn about $1.84 to $1.88 per share. Same-store sales are expected increase about 6 percent for the year.
Additionally, Dick's announced that it had agreed to acquire Golf Galaxy Inc. in a $225 million deal. Dick's said that both its fourth-quarter and 2006 fiscal year estimates do not include the combined results of Dick's and Golf Galaxy and exclude any expenses related to the acquisition.
In the third quarter, the company opened 26 single-level stores (23 in existing markets and three in new markets), which completes the new store openings for the year. It now operates 294 stores in 34 states.
Hibbett's Q3 profit up 22 percent
Third-quarter profit for Hibbett Sporting Goods (Nasdaq: HIBB) grew 22 percent, crediting better-than-expected sales of clothes and sports equipment.
Quarterly net income rose to $9.9 million, or $0.31 per share, from $8.2 million, or $0.24 per share, in the year-ago period. Revenue grew 17.2 percent to $129.7 million from $110.6 million. Hibbett said same-store sales rose 7.1 percent in the quarter.
The company opened 20 stores and closed two during the third quarter, bringing its total to 590. It expects to open about 25 and close one during the fourth quarter.
Looking ahead, Hibbett expects fiscal fourth-quarter earnings per share of between $0.34 and $0.38, with full-year earnings of between $1.12 and $1.16 per share.
During the third quarter, the company repurchased 260,000 shares of common stock for $7.0 million. Since the inception of the program in August 2004, the company has repurchased 4.3 million shares for a total expenditure of $96.7 million.
Jarden closes common stock offering
Jarden Corp. (NYSE: JAH), parent of Coleman and Camping Gaz, closed its public offering of 11,500,000 shares of common stock at $36.25 per share. Warburg Pincus and its affiliates sold 7,500,000 shares, bringing their ownership to under 10 percent of Jarden's outstanding common stock. In addition, Jarden issued and sold 4,000,000 shares of common stock.
After expenses, net proceeds to Jarden were approximately $138 million. Jarden said it intends to use the net proceeds for debt repayment, potential future acquisitions and general corporate purposes.
Warburg Pincus and the other potential selling stockholders, including the CEO and CFO and other executive officers and directors of Jarden, have also granted the underwriters of the offering a 30-day option to purchase up to 1,725,000 additional shares of common stock. Jarden will not receive any proceeds from the secondary shares sold by Warburg Pincus and the other selling stockholders.
Eddie Bauer posts multi-million-dollar loss in Q3
Eddie Bauer Holdings (Nasdaq: EBHI) reported that its third-quarter loss widened on a hefty impairment charge and income tax expense.
The company, which has agreed to be bought by two private equity firms, reported a loss of $197.6 million, or $6.58 per share, versus a loss of $10 million, or $0.33 per share, in the year-ago period. This year's results were impacted by an impairment charge of $117.6 million and an income tax expense of $52.7 million, it said.
Revenue for the quarter declined 3 percent to $211.3 million from $217.3 million. Same-store sales fell 1.5 percent.
Eddie Bauer has agreed to be purchased by a holding company owned by affiliates of Sun Capital Partners Inc. and Golden Gate Capital for $286 million in cash and is awaiting approval by shareholders.
Wellman declares quarterly dividend
Wellman's (NYSE: WLM) board of directors declared a quarterly dividend of $0.02 per share on the outstanding shares of the company's common stock payable on Dec. 15, 2006, to stockholders of record as of Dec. 1, 2006.
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