Outdoor financials: Timberland 2Q revenue up, loss narrows; plus Adidas and Amer Sports

Timberland reported higher revenue and narrowed its loss for the second quarter 2011. Plus Adidas earnings shine and Amer Sports' results are mixed.
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The Timberland Co. (NYSE:TBL) reported higher revenue, and narrowed its loss in the second quarter 2011 – likely the last report it gives before being officially acquired by VF Corp. sometime in the third quarter.

The Stratham, N.H.-based shoe and apparel company, also parent to the SmartWool brand, reported second-quarter revenue of $240.1 million – up 27 percent from the same period a year ago. Timberland’s second-quarter net loss narrowed to $20.1 million, or a loss of $0.39 per diluted share, compared to a net loss of $23.5 million, or a loss of $0.44 per diluted share a year ago.

Sales were strongest in male footwear and SmartWool accessories. By region, North American sales rose 15.4 percent to $106.1 million, Europe sales increased 37.4 percent to $91.7 million and Asia sales jumped 40 percent to $42.3 million,

Company officials said they expect higher product costs to continue through 2011, but they would offset those costs with “strategic price increases” in the latter half of the year.



Adidas 2Q revenue, profit up; raises guidance


Adidas raised its guidance for the second time this year as its second-quarter 2011 revenue and profit increased better than expected.

The German sports and outdoor brand reported revenue up 5 percent to EUR 3.06 billion (USD $4.32 billion). Its net profit increased nearly 11 percent to EUR 140 million (USD $197.7 million) in the first half of 2011.

Company officials said Adidas was on its way to record revenues in 2011, despite increased cost pressures and unfavorable currency exchanges. The company saw its greatest revenue growth in China and emerging European markets.

The positive results led Adidas to raise its full-year projections for a second time this year, now predicting that its currency-neutral revenue will rise 10 percent for the full-year 2011, versus previous percentage growth expectations in the high single-digits.

Amer Sports revenue 2Q slips, but loss narrows

Amer Sports reported lower revenue, but was able to narrow its loss for the second quarter 2011 on a stronger performance from its outdoor and wintersport brands.

The Finland-based parent of Arc’teryx, Atomic, and Salomon reported second-quarter revenue down 1 percent to EUR 315.6 million (USD $445.7 million), compared to the same period a year ago. Amer recorded a second-quarter loss of EUR 12.6 million (USD $17.8 million), improving from a loss of EUR 16.9 million (USD $23.9 million) during its traditionally weakest quarter.

By sector, Amer’s Winter and Outdoor Group revenue rose 15 percent to EUR 133.4 million (USD $188.4 million), while its Ball Sports Group dropped 11 percent to EUR 136.3 million ($192.5 million) and its Fitness Group fell 3 percent to EUR 45.9 (USD $64.8 million). By product, the company’s apparel and footwear sales showed the strongest growth and officials said they would continue to expand the softgoods segment.

Despite the overall weaker second quarter, Amer is still up 11 percent in revenue for first half of 2011 and President and CEO Heikki Takala said he expects the company to duplicate that performance in the second half of the year despite some cost increase pressures.

“Looking forward, raw material cost increases remain a challenge and we are continuing our mitigation actions to safeguard the 2010 gross margin level,” Takala said in a statement.



(Conversion of euro 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, 2011.)

-- Complied by David Clucas


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