Outdoor financials: Johnson Outdoors revenue, profit slip on lower outdoor sales; plus earnings from Backcountry.com parent Liberty
The maker of Eureka tents and Old Town canoes and kayaks saw its outdoor product sales fall with a drop in military sales. Plus, a rise in Backcountry.com and e-commerce sales help boost Liberty Interactive.
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Johnson Outdoors (Nasdaq:JOUT), makers of Eureka tents and Old Town canoes and kayaks, saw its latest quarterly revenue and profit slip due to a decline in outdoor product sales.
The Racine, Wis.-based company reported revenue of $122.5 million for its fiscal third quarter, ended July 1, 2011 – down 1 percent from a year ago. Quarterly profit also slipped, down to $8.1 million, or $0.83 per diluted share versus a profit of $10.4 million, or $1.09 per diluted share a year ago.
Johnson’s outdoor equipment revenue, which accounts for about 10 percent of the business, fell 27 percent to $11.3 million, compared to $15.6 million during the same period a year ago. A leading factor to the decline, officials said, was a 68-percent drop in military sales, or $3.4 million less, due to U.S. budget cuts.
“Economic and weather conditions impacted the pace of recovery in outdoor recreational markets during the third quarter,” Johnson Outdoor Chairman and CEO Helen Johnson said in a statement. “The late onset of the paddlesports and camping season coincided with a downtick in consumer spending as economic anxieties flared.”
Johnson said increased sales and profit from the company’s marine sector helped offset the decline from its outdoor group. The company also paid down more of its debt – now at 22.7 million as of July 1, versus $31.9 million a quarter ago.
Liberty Interactive revenue, profit up with help from e-commerce
Liberty Interactive Group (Nasdaq:LINTA), parent company of online outdoor retailer Backcountry.com, reported higher revenue and profit for the second quarter 2011.
The group, which is primarily driven by shopping channel QVC, saw its second-quarter 2011 revenue increase 9 percent to $2.2 billion, and its operating income before depreciation and amortization (OIBDA) rise 5 percent to $450 million, compared to the same period a year ago.
The profit increase was due to “favorable results at QVC and the e-commerce companies,” officials said in the release.
Within its e-commerce sector, including Backcountry.com, Liberty increased revenue 18 percent to $347 million in the second quarter, and increased adjusted OIBDA 29 percent to $36 million.
“Each of the e-commerce businesses reported an increase in revenue for the quarter as a result of acquisitions and deconsolidations, increased marketing efforts and increased conversion resulting from site optimization and broader inventory offerings,” officials said.
–Compiled by David Clucas