Outdoor financials: Arc’teryx, Salomon apparel help Amer Sports; plus positive 2Q results from Johnson Outdoors, Garmin and Big Five
A slew of outdoor companies reported positive earnings for the second quarter 2012, including Amer Sports, Johnson Outdoors, Garmin and Big Five. SNEWS has the rundown and details.
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Strong sales of outdoor apparel helped Amer Sports, parent to Arc’teryx and Salomon, report higher earnings for the second quarter 2012, despite a wider loss.
Amer’s outdoor and wintersports group reported sales up 13 percent to EUR 150.9 million ($187.4 million), up 8 percent in local currencies.
By region, outdoor and wintersports sales were strongest in North America (up 18 percent) and Asia (up 40 percent) in local currencies, while European sales fell 2 percent.
By category, apparel led the way, up 38 percent in local currencies to EUR 25.4 million ($31.6 million), while footwear held even at EUR 56.7 million ($70.4 million). Wintersports equipment rose 11 percent, although officials warned that pre-season orders are down 13 percent, coming off last year’s weak winter weather. Cycling sales rose 2 percent and sports equipment sales climbed 14 percent, primarily from a rise in Suunto GPS watch sales.
Overall, Amer Sports, which includes fitness and ball sports segments as well, reported total sales up 12 percent to EUR 353.8 million ($439.5 million), up 5 percent in local currencies. But the company’s quarterly loss widened to EUR 22.4 million ($27.8 million), versus a loss of EUR 12.6 million ($15.7 million) a year ago, due to “investments into the expansion of softgoods, sales coverage, emerging markets and own retail burdened the seasonally low quarter.”
For 2012, the company expects 5 percent growth in revenue; with a 20 percent rise in apparel and 5 percent rise in footwear.
“We have significantly increased our product initiative pipeline especially in Salomon, Arc’teryx and Wilson for 2013 and onwards,” officials said.
Eureka parent sees 2Q gains
Johnson Outdoors (Nasdaq: JOUT) reported higher sales and profit for the third quarter 2012, recovering from earlier year declines.
The parent company for Eureka tents and sleeping bags, Necky kayaks and Old Town canoes, reported third-quarter sales up 5 percent to $128.6 million, while its quarterly profit rose to nearly $9 million, versus $8.1 million a year ago.
Johnson’s outdoor sales increased 8 percent, largely due to an uptick in military sales, while its marine electronic sales gained 9 percent, and watercraft sales inched up 1 percent.
The company recently restructured its watercraft business, consolidating marketing teams in the U.S. and shifting to independent distributors in Europe. The changes led to 17 positions in the U.S. and 11 in Europe being cut.
Garmin Outdoor up 24 percent in 2Q
GPS maker Garmin reported positive sales and earnings for the second quarter 2012, including solid gains from its outdoor segment.
Garmin’s outdoor sales jumped 24 percent to $100 million, compared to a year ago. Officials said growth was driven by the company’s golf products, along with increases in its dog tracking and training products. The company also expects gains from the release of its new outdoor Fenix GPS wristwatch.
Overall, Garmin reported total second-quarter revenue up 7 percent to $718 million, while its quarterly net income rose to $185.9 million, versus $109.5 million a year ago.
Big Five sales inch up in 2Q
Big Five (Nasdaq: BGFV) same-store sales rose 1 percent for the second quarter 2012 as the sporting goods, outdoor and fitness retailer showed its first improvement since the third quarter 2010.
Officials said the recovery would have been stronger had it not been for shifting the Fourth of July sales into the third quarter. Sales were strongest from the apparel and footwear categories.
Overall second-quarter revenue increased 3.2 percent to $226.6 million, while quarterly net profit slipped to $2.6 million versus $ 3.1 million a year ago.
Big Five opened three new stores, and closed three stores (one of each a relocation) to end the second quarter with 407 stores in operation. It expects to open three stores and close two during the third quarter, and open nine stores and close one in the fourth quarter.