Outdoor financials: VF’s Q2 income nearly doubles, plus Deckers, Columbia, LaCrosse, Luxottica

VF's second-quarter income rose 47 percent, Deckers' Q2 sales rose more than 33 percent, Columbia Sportswear's Q2 loss widened by 7 percent, LaCrosse said its Q2 sales dropped 11 percent, and Oakley sales helped boost Luxottica's Q2 net profit by 30 percent.
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VF’s Q2 income nearly doubles

Second-quarter net income rose by nearly half for VF Corp. (NYSE: VFC), helped, it said, by better sales across its brands, which include The North Face, JanSport, Eagle Creek and Vans.

Net income rose 47 percent to $110.8 million, or $1 per share, from $75.5 million, or $0.68 per share last year.

Revenue rose nearly 8 percent to $1.58 billion from $1.47 billion last year.

VF said revenue rose in all categories, including a 12-percent increase in the company's largest category, outdoor and action sports, which generated $584 million versus $523 million last year. Profit for the group was $81.5 million, compared to $60.3 in the same period last year.

The company raised its yearly net income guidance to $6.10 per share from $5.90 per share. It now expects revenue to rise 4 percent to 5 percent in 2010, rather than its prior guidance of 3 percent to 4 percent -- implying revenue of $7.43 billion to $7.5 billion.

The company also noted that cash and equivalents were $540 million at the end of the quarter, up 40 percent from a year ago. The company expects $850 million in cash flow generation by the end of the year. So far this year, VF said it has spent $318 million to buy back 4 million shares, 1 million shares more than it previously predicted.

Also, its board of directors declared a quarterly cash dividend of $0.60 per share, payable on Sept. 20 to shareholders of record on Sept. 10.



Deckers’ Q2 sales rise 33.7 percent


Strong margins and international sales drove second-quarter net sales for Deckers Outdoor (Nasdaq: DECK) up 33.7 percent. The company’s brands include Teva, Ugg, Simple and Ahnu.

Net sales for the period ended June 30 were $137.1 million versus $102.5 million last year. International sales increased 54.8 percent to $71.8 million versus $46.4 million a year ago.

Its net income was $8.9 million, or $0.23 per diluted share, compared to $2.8 million, or $0.07 per diluted share, last year.

By division, UGG’s net sales increased 34.6 percent to $100.2 million, compared to $74.4 million for the same period last year, and Teva’s sales increased 38.4 percent to $31.2 million versus $22.6 million last year. The combined net sales of the company’s other brands, including Simple and Ahnu, were $5.6 million for both the second quarter of 2010 and 2009.

The company said gross margin improved 450 basis points to 44.3 percent versus 39.8 percent a year ago.

The company expects 2010 sales to grow 14 percent and earnings to grow 16 percent. It had earlier forecast a 13 percent increase in revenue and 11 percent in earnings.



Columbia Sportswear’s Q2 loss widens 7 percent


Despite improved sales of its sportswear and outerwear, Columbia Sportswear (Nasdaq: COLM) said its second-quarter loss widened, hindered by excessive costs.

For the quarter ended June 30, the company’s loss was $10 million, or $0.31 per share, compared with a loss of $9.8 million, or $0.29 per share, a year ago.

Sales rose 24 percent to $221.8 million from $179.3 million. Columbia said it was helped by gains in markets such as the United States and sales of products including its jackets and other outdoor clothing. But the cost of sales and selling, general, and administrative expenses rose more quickly.

“Results for the second quarter, our smallest revenue quarter of the year, were better than our April outlook, primarily due to stronger reorders and fewer cancellations in our U.S. wholesale business and higher than expected sales from our retail stores, leading to double-digit growth in every product category,” said Tim Boyle, Columbia’s president and CEO, in a statement.

Columbia brand sales totaled $199.4 million in the second quarter of 2010, a 23-percent increase compared with the second quarter of 2009. Mountain Hardwear brand sales increased 39 percent to $18.3 million.

The company also raised its 2010 net sales outlook to an increase between 14 percent and 16 percent over 2009 figures, based on factors such as its results in the first half of the year and its fall 2010 order backlog. Previously, it expected an increase between 12 percent and 14 percent.

Also, the board of directors approved a dividend of $0.18 per share, payable on Aug. 26 to shareholders of record on Aug. 12.

LaCrosse’s Q2 sales drop 11 percent

Both second-quarter sales and revenues dropped for LaCrosse Footwear (Nasdaq: BOOT), parent of Danner, partially impacted by the timing of U.S. government orders for boots.

For the second quarter ended June 26, net sales were $26.6 million, down 11 percent from $30.0 million in the second quarter of 2009.

Net income was $0.1 million, or $0.02 per diluted share, versus $1.7 million, or $0.26 per diluted share, last year.

Sales to the work market dropped 15 percent to $18.6 million, compared to $21.9 million for the same period of 2009. Sales to the outdoor market fell 2 percent to $8.0 million versus $8.1 million for the same period in 2009.

The company said the decrease in outdoor sales was the result of constraints on the supply of finished goods caused by capacity limitations at its manufacturing facilities in China. It particularly impacted product styles being launched in the second half of 2010.

Gross margin was 40.9 percent of net sales, comparable to the same period of 2009, it said. LaCrosse’s operating expenses were $10.7 million, up 4 percent from last year.

Also, the company’s board of directors approved a quarterly dividend of $0.125 per share of common stock. It will be paid on Sept. 18 to shareholders of record as of Aug. 22.

Oakley boosts Luxottica’s Q2 bottom line

Luxottica (NYSE: LUX) said net profit in the second quarter rose 30 percent on strong sales of its Ray-Ban and Oakley brands, the rebounding U.S. market and improved profitability in both wholesale and retail channels.

Net profit was EUR 150.1 million (USD $193.6 million) versus EUR 115.3 million (USD $148.7 million) in the same period a year earlier.

Net sales rose 13.8 percent to EUR 1.59 billion (USD $2.05 billion), up from EUR 1.40 billion (USD $1.80 billion) in the same period last year.

Operating profit, or earnings before interest and tax, rose 27 percent to EUR 258.3 million (USD $333.2 million). Earnings before interest, tax, depreciation and amortization, or Ebitda, climbed 22 percent year-on-year to EUR 335.4 million (USD $432.7 million).

The company said sales in U.S. dollars rose 8 percent despite cautious consumer behavior in the country, while Ray-Ban and Oakley continued to record double-digit percentage growth.

(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 July 26.)

--Compiled by Wendy Geister

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