Outdoor financials: Outdoor sales slip for Jarden; up for Under Armour; down for Rocky Brands
Sales for Jarden Corp.’s outdoor brands, including Marmot, Coleman, Ex-Officio, K2 and Marker, slipped in the second quarter 2012, but maintained a profit, albeit smaller. Meanwhile Under Armour sales jumped 27 percent, while Rocky Brands revenue fell 15 percent.
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Sales for Jarden Corp.’s (NYSE: JAH) outdoor brands, including Marmot, Coleman, Ex-Officio, K2 and Marker, slipped in the second quarter 2012, but maintained a profit.
Jarden’s Outdoor Solutions Group’s revenue fell 3.3 percent to $747.3 million, while the segment’s operating income dropped to $85.3 million, versus $103.6 million during the same period a year ago. The company’s outdoor brands were unable to capture stronger spring sales in the face of weaker business in Europe.
Overall, Jarden’s revenue remained unchanged for the second quarter at $1.67 billion. The weakness in the Outdoor Solutions, which accounts for 45 percent of Jarden’s business, was offset by strength in the company’s Consumer Solutions brand. Jarden’s quarterly net income increased to $83.2 million, or $1.08 per diluted share, compared to $73.9 million, or 83 cents per diluted share, during the same period a year ago.
Despite the weaker numbers from outdoor, Jarden Executive Chairman Martin Franklin expressed bullishness for the segment’s leading brand Marmot.
“One of our targeted growth initiatives is growing the Marmot brand, and as the world prepares for the start of the Olympics this week in London, I’m delighted that the 7 million expected spectators will be able to see firsthand Marmot’s latest flagship store,” he said in a statement with the July 24 earnings release.
Under Armour sales jump 27 percent
There’s little slowdown in the consumer appetite for Under Armour.
The Baltimore, Md.-based sportswear company reported its second-quarter 2012 revenue up 27 percent to $369 million, while its quarterly profit rose to $7 million, compared to $6 million a year ago.
Under Armour officials reported a 44 percent rise to $67 million in footwear sales, 23 percent gain to $253 million in apparel and a 21 percent increase to $39 million in accessories.
The positive results led officials to raise their 2012 revenue guidance, now expected to grow by 25-26 percent to between $1.8 billion and $1.2 billion, up from previous projections of a 21-22 percent increase.
Rocky Brands sales fall 15 percent
Rocky Brands (Nasdaq: RCKY), parent to its namesake, Georgia and Durango boots, reported lower sales and profit for the second quarter 2012.
The Nelsonville, Ohio footwear brand saw its quarterly revenue dip 15 percent to $44.4 million, while its net income fell to $200,000, versus $2.3 million a year ago.
Rocky Brands officials said the declines were due in part to weaker hunting footwear sales, along with a delay in $2.5 million in shipments due to a power outage at the end of the quarter. The company also continues to pay down its debt, down 24 percent from a year ago to $29.9 million as of June 30, 2012.
–Compiled by David Clucas