Business segment drives sales for Gaiam’s Q1
Gaiam (Nasdaq: GAIA) reported an 11.2-percent rise in first-quarter net revenue driven by strong sales in its business segment.
For the quarter ended March 31, net revenue was $62.2 million, compared to $55.9 million recorded in the same quarter last year.
The company said the net revenue increase was mainly driven by the business segment, which grew 20.7 percent, and continued growth in the solar segment. It was partially offset by further planned reductions in catalog circulation and the closure of an unprofitable business in the direct-to-consumer segment, it added.
Net loss was $0.3 million, or $0.01 per share, during the quarter, compared to a net loss of $3.1 million, or $0.13 per share, during the same quarter last year.
Gross profit increased to $32.2 million, or 51.8 percent of net revenue, for the first quarter of 2010, from $31.0 million, or 55.4 percent of net revenue, during the comparable quarter last year.
Selling and operating expenses decreased to $29.8 million, or 47.9 percent of net revenue, versus $33.9 million, or 60.7 percent of net revenue, during the same quarter last year.
Operating loss was $0.6 million, a $5.6 million improvement from an operating loss of $6.2 million during the same quarter of last year.
The company said its goals for 2010 are to generate double-digit internal revenue growth, improve bottom line results and expand its market share in non-theatrical media.
U.S. sales spur adidas’ Q1 to record levels
adidas’ first-quarter profit rose sharply, boosted by sales in big sporting events like the Superbowl and upcoming World Cup. Its brands include Reebok and Rockport.
It earned EUR 168 million (USD $219.9 million) in the January-March period versus EUR 5 million (USD $6.5 million) last year.
Revenues rose 4 percent to EUR 2.67 billion (USD $3.49 billion) in the quarter, compared with EUR 2.57 billion (USD $3.36 billion) a year earlier.
CEO Herbert Hainer said the company had a “great start” to the year, with record first-quarter sales.
North American sales were up 10 percent to EUR 585 million (USD $765 million) in the quarter, while sales in Latin America rose 24 percent to EUR 271 million (USD $354 million).
Revenues were up in nearly all of the company’s markets, except China, where sales fell 20 percent to EUR 198 million (USD $259 million) in the quarter.
In western Europe, sales were up 4 percent, helped in part by growing anticipation for the World Cup that starts next month in South Africa.
Looking ahead, adidas said it expects its net profit to improve this year, with earnings per share to reach between EUR 2.05 and 2.30 (USD $2.68-$3.01) for the year — an improvement over the initial forecast of EUR 1.90-2.15 (USD $2.48-$2.81) a share.
(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 May 4.)
Garmin reports drop in Q1 earnings, revenue
Despite a strong showing by the majority of its business units, Garmin (Nasdaq: GRMN) reported a drop in first-quarter net income and revenue, dragged down by a 15-percent revenue decline in its automotive and mobile unit.
The outdoor/fitness segment posted revenue growth of 28 percent in the quarter on the heels of 10=percent growth during 2009. Its marine segment grew 9 percent, and aviation was up 12 percent.
The company reported a net income of $37.3 million, or $0.19 per share, for the three months ended in March, down from $48.5 million, or $0.24 per share, a year ago. Excluding the impact of foreign currency swings and tax items, earnings came to $0.38 per share, up from $0.25.
Overall revenue fell to $431.1 million from $436.7 million.
“The first quarter of 2010 provided mixed results, but we view the overall trends in the business as positive indicators for the remainder of the year,” CEO Min Kao said in a statement.
The company said it still expects to achieve its full-year guidance for both revenue and earnings. Margins improved on reduced warranty estimates.
Shares of Garmin were down to $32.05 in early trades on May 5 — the lowest level for the stock in two months. It closed at $34.19, down $3.29, or 8.78 percent.
Nike outlines growth plans
Nike (NYSE: NKE) said it plans to increase revenue 40 percent to $27 billion by 2015 by driving growth in international markets and among its brands, which also include Converse, Hurley and Umbro.
Nike’s CEO Mark Parker also said at a meeting with stock analysts and investors in New York that the company plans to dedicate $5 billion to share repurchases over the next five years. He added that the company also plans to generate total cash flow from operations of $12 billion by 2015.
Sears to expand Internet reach, add high-end fitness equipment
Future plans for Sears Holdings (Nasdaq: SHLD) includes revamping the merchandise and services in its stores and boosting its Internet business, according to Chairman Edward Lampert during an annual shareholders meeting.
Sears said it hopes the two-pronged approach will continue the momentum it gained during the recession, when its profit rose as it cut expenses.
“Five years from now, I believe this company, to some people, will be unrecognizable compared to what the company was 20, 30 or 40 years ago,” Chairman Edward Lampert said in a statement.
Sears is increasingly focusing its efforts online, with a revamped website that now includes products from outside vendors, a new emphasis on social media and mobile applications that allow customers to shop from their cell phones.
Among its initiatives, it plans to expand layaway at both Sears and Kmart, and add more high-end fitness equipment at Sears.
Also, Sears’ shareholders elected the company’s interim CEO and president, W. Bruce Johnson, to its seven-member board. Johnson took the post in February 2008 after Sears ousted then-CEO Aylwin Lewis.
–Compiled by Wendy Geister
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