Outdoor footwear brand Teva reported its sales up less than 1 percent to $17.9 million for the third-quarter 2013 on stronger direct-to-consumer sales and noted a repositioning for the brand to improve year-round sales.
Overall, parent company Deckers Outdoor Corp. (Nasdaq:DECK), which also owns Ugg and Sanuk, reported third-quarter sales up 2.7 percent to $386.7 million. Ugg sales gained 1.3 percent to $337 million and Sanuk sales rose less than 1 percent to $18.4 million.
Similar to Teva, a bulk of the gains came from direct-to-consumer channels for Ugg and Sanuk. Deckers as a whole reported its third-quarter branded retail store sales up 34.5 percent to $52.6 million following 37 new store openings and a 1.9 percent same-store sales increase. Deckers’ e-commerce sales increased 12.2 percent to $14.9 million, driven primarily by a boost in online international sales.
Despite the revenue increases, Deckers’ third-quarter net income slipped to $33.1 million versus $43.1 million a year ago.
Looking ahead, company officials were upbeat, for the full-year 2013 maintaining their full-year 2013 forecast of an 8 percent rise in sales, while increasing their profit outlook to rise 10 percent on an earnings-per-share basis. Most of those gains will come from Ugg and Sanuk, as Teva sales are expected to come in flat for the year.
In the company’s conference call, Deckers CEO Angel Martinez noted a “repositioning of Teva” under new president Jeffrey Bua to expand the brand beyond its outdoor categories and enter casual footwear markets in both the spring and fall.
“For next year's product offering, we plan to include a line of canvas casual footwear aimed at markets that remain warm year-round,” Martinez told investors. “In addition, we plan to infuse alternative upper fabrics, such as corduroy and wax canvas, into select Teva fall and winter products in an effort to appeal to consumers in colder climates.”
Jarden sees 3Q specialty retail boost
Jarden Corp. (NYSE: JAH), parent to Marmot, K2, Coleman and numerous other outdoor and wintersports brands, reported higher third-quarter 2013 sales for its Outdoor Solutions group on better specialty business and modest ski sales.
Jarden’s outdoor group sales edged up 2 percent to $670.6 million, while its quarterly operating net income rose $66.9 million versus $66.4 million a year ago.
Sales were especially strong at specialty retail and smaller stores, “offsetting softer trends experienced at some of our mass customers,” CEO James Lillie told investors on the company’s conference call. “As planned, ski sales remained modest, in line with our expectations.” He noted that Coleman, in particular, “experienced broad-based growth,” thanks to the brand’s redesigned and more eco-friendly hard-sided coolers.
Overall, Jarden’s diversified portfolio of brands, which includes consumer goods, outpaced its outdoor sales, rising 5.5 percent to 1.8 billion in the third quarter, including its recent acquisition of Yankee Candle, or up 5.6 percent minus the acquisition. Companywide, quarterly net profit increased to $94.9 million versus $76.9 a year ago.
Lafuma had a rough year
French outdoor brand Lafuma closed out its 2013 fiscal year on a down note and expects the downtrend to continue into 2014.
The parent company to Millet, Eider and its namesake brand, reported full-year 2013 sales down 12.3 percent to EUR 196.3 million ($266.8 million) as business weakened in France and aboard.
Lafuma brand sales fell 11.5 percent, while the more specialty mountain Eider and Millet division faired slightly better with a 2.4 percent drop. The company’s boardsports brand, Oxbow, fell the most — down 29.3 percent.
Based on bookings for Lafuma’s fiscal first quarter — the start to the fall/winter season — officials said they expect “the present decline in sales revenue will most likely continue.”
Fitness watches continue to gain for Garmin
Garmin continues make gains in the fitness watch category, while its outdoor sales slipped.
The GPS maker reported its fitness sales up 25 percent to $81 million in the third quarter 2013, while its outdoor sales fell 4 percent to $101.4 million. Running watches continued to be popular for the brand, especially as the technology in newer models becomes slimmer and lighter.
But competitors are watching, and similar to smartphones knocking over its personal navigation device sales, which in the third quarter fell 16 percent to $322.5 million, a new slew of fitness and smart watches from Samsung, Adidas and (expected) Apple, Garmin could dampen the company’s recent fitness success.
Diversification has been Garmin’s answer so far, and in outdoor it debuted a new line of action cameras — the Virb and Virb Elite — looking to take a slice of the pie from GoPro.