Outdoor financials: Timberland’s Q3 revenues surge, plus Garmin, Outdoor Channel, Crocs, adidas, Backcountry.com, Hanesbrands

Timberland’s third-quarter revenues surged, Garmin's Q3 profit rose, Outdoor Channel's Q3 sales dropped 3 percent, Crocs' Q3 sales jumped 30 percent, adidas posted a 25-percent rise in Q3 profit, Backcountry.com's parent saw Q3 sales rise 8 percent, and Hanesbrands said it’s planning a $750 million senior notes offering to refinance debt.
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Timberland’s Q3 revenues surge

Net income for Timberland (NYSE: TBL), parent of SmartWool, surged 38 percent in the third quarter on strong sales growth in Europe and Asia.

Net income for the period ended Oct. 1 rose to $52.2 million, or $1 per share, compared with $37.8 million, or $0.68 per share, in the prior-year period.

Revenue increased 3 percent to $432.3 million, up from $421.8 million.

The company said European sales were up 5 percent to $204.1 million, while Asian revenue increased 19.7 percent to $46.7 million. In North America, revenue dropped 3.6 percent to $181.5 million.

Footwear revenue was essentially flat at $319.8 million, while clothing and accessories revenue rose 11.1 percent to $106.4 million, it added. Global wholesale revenue increased 1.9 percent to $348.7 million, it said.



Garmin Q3 profit rises, revenue falls


Garmin (Nasdaq: GRMN) reported higher earnings but lower revenue for the third quarter. It also plans to halt efforts to break into the Smartphone market.

Its net income rose to $279.5 million, or $1.43 per share, for the three months ended Sept. 25 from $215.1 million, or $1.07 per share, a year ago.

Excluding a tax adjustment and other one-time items, it said it earned $0.70 a share.

Revenue fell to $692.3 million from $781.3 million a year ago.

The company said it is "winding down" its Smartphone efforts, and will instead focus on the divisions that grew this quarter -- namely, those that make fitness and outdoor gadgets, such as watches for runners that record distance and speed, and those that sell GPS hardware to plane and boat makers.

Garmin's revenue in outdoor and fitness products rose 9 percent in the third quarter, while its aviation and marine divisions rose 4 percent and 1 percent, respectively. Revenue for its automobile and mobile division dropped 19 percent.

Sales in Asia grew 47 percent, and 2 percent in Europe. Revenue in North America fell 8 percent.

Garmin revised its year-end forecast to predict 2010 revenue between $2.65 billion and $2.75 billion, with earnings per share landing between $2.70 and $2.90.

Outdoor Channel Q3 sales drop 3 percent

Despite a 14-percent increase in advertising revenue, Outdoor Channel Holdings (Nasdaq: OUTD) posted a 3-percent drop in third-quarter sales.

For the quarter ended Sept. 30, total revenues were $22.9 million, compared with $23.6 million in the third quarter of 2009.

Net income was $2.4 million, or $0.10 per diluted share, compared to net income of $1.4 million, or $0.05 per diluted share, in the prior-year period.

Advertising revenue for the quarter increased 14 percent to $11.2 million, up from $9.9 million in the third quarter of 2009. Subscriber fees dropped 5 percent to $4.2 million.

Operating income was $4.5 million compared to $2.0 million in the third quarter of 2009.

Q3 sales jump 30 percent for Crocs

Crocs (Nasdaq: CROX) said its third-quarter net income climbed 13 percent as demand for its shoes rose.

For the quarter that ended Sept. 30, its profit was $25 million, or $0.28 per share, compared with $22.1 million, or $0.25 per share, in the same quarter last year.

The company reported growth across its three revenue channels: Wholesale sales climbed 16 percent to $123.9 million, retail sales rose 35 percent to $72.5 million and web sales increased 19 percent to $19.2 million.

Excluding one-time items, Crocs said it earned $0.25 per share.

Revenue jumped 30 percent to $215.6 million from $177.1 million last year.

Looking ahead, Crocs said it is forecasting a fourth-quarter profit of $0.02 per share on $165 million in revenue.

adidas posts 25 percent rise in Q3 profit

adidas reported a 25-percent increase in third-quarter profit, saying the boost was partially a result of business recovery in China.

Its net income was EUR 266 million (USD $373.3 million), or EUR 1.27 per share (USD $1.78), up from EUR 213 million (USD $298.9 million), or EUR 1.03 per share (USD $1.44), a year earlier.

The company’s revenue grew 20 percent to EUR 3.47 billion (USD $4.87 billion).

The company said its sales in China grew 9 percent, excluding currency swings. After the company’s Chinese revenue declined in the last year and a half, hurt by discount sales of inventory from the Beijing Olympics, adidas said it was able to raise prices in the country.

Looking ahead, adidas said it is predicting that group sales will rise by about 8 percent this year, on a currency neutral basis, which is higher than a previous outlook for a mid-single-digit increase. It also expects earnings per share to rise between 10 percent and 15 percent in 2011.



(Conversion of Euros into U.S. dollars is for information only, is not necessarily relative to earnings, and is based on the currency rate as of Nov. 4.)

Backcountry.com parent posts 8 percent increase in Q3 sales

Liberty Media Corp. (Nasdaq: LCAPA), whose Liberty Interactive Group owns Backcountry.com, reported higher revenue for all of its major businesses.

Liberty Interactive group's revenue increased 8 percent to $2.0 billion and adjusted OIBDA increased 8 percent to $373 million, while operating income increased 13 percent to $220 million.

The company said the increase in revenue, adjusted OIBDA, and operating income was primarily due to favorable results from its QVC business.

Hanesbrands plans notes offering

Hanesbrands (NYSE: HBI), parent of Champion and Duofold, said it’s planning a $750 million senior notes offering to refinance debt.

The company said it plans to use the proceeds from the offering to repay part of its debt under a senior secured credit facility. The notes, which are due in 2020, are being sold to institutional buyers, it noted.

--Compiled by Wendy Geister

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