Marmot, K2, Coleman parent sees tepid 3Q outdoor sales
Outdoor group sales rose 1.3 percent in the third quarter and officials reiterated a conservative forecast for winter 2014-15.
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Jarden (NYSE: JAH) reported minimal third-quarter 2014 gains for its Outdoor Solutions group, which includes Marmot, K2, Coleman, Backcountry Access and Marker Volkl among others.
Third-quarter sales rose 1.3 percent from the same period a year ago to $679.1 million. Operating profit from the segment slipped slightly to $66.4 million versus $66.9 million a year ago. Officials said the company’s Coleman brand led the way in global third-quarter sales gains.
Looking ahead, officials reiterated expectations for a “moderate wintersports 2014-15 season,” as the company ramps up a new wintersports manufacturing facility and other technology investments.
“Outdoor Solutions a few years ago was really leading all of the businesses on organic growth, and this year, you see Branded Consumables doing that, but we fully anticipate Outdoor Solutions to be back in the 3 percent to 5 percent growth range as we move through 2015 and 2016,” Jarden CEO James Lille told investors during the company’s conference call and earnings release on Oct. 23. “We have a new factory that came online, and so we’re really very much focused on making sure that we produce high-quality products as opposed to just a lot of products in the hope that we can sell them. And so that will put the brakes on incremental revenue opportunities in Q4 for Outdoor Solutions, but we feel good about the business overall.”
Jarden’s total diversified business, including its consumer goods, pulled in $2.14 billion for third quarter, up 19 percent from a year ago, or 6.4 percent organic growth, minus acquisitions. Quarterly net income grew to $108.6 million versus $94.9 million a year ago.
