Fitness financials: Life Fitness boosts Brunswick’s 2Q results; plus Kellwood acquires fitness, yoga brand
Life Fitness saw its second-quarter 2011 sales rise 15 percent, contributing to Brunswick's positive earnings. And Kellwood acquires yoga, fitness brand Zobha.
Get access to everything we publish when you sign up for Outside+.
Brunswick reported higher sales and profit for the second quarter 2011 thanks to strong sales across most of its sectors, including its fitness equipment brand Life Fitness.
The Lake Forest, Ill.-based recreational product company reported second-quarter revenue up 8 percent to nearly $1.1 billion, compared to $1.01 billion during the same period a year ago.
Brunswick’s quarterly net profit jumped to $69.3 million, or $0.75 per diluted share, compared to a net profit of $13.7 million, or $0.15 per diluted share a year ago. Officials noted that the 2010 second-quarter earnings were impacted by restructuring charges.
The company’s Life Fitness division (www.lifefitness.com), including the Hammer Strength brand, reported second-quarter revenue of $141.6 million – up 15 percent from $123.2 million a year ago. International sales, which represented 53 percent of the division’s sales in the second quarter, rose 13 percent. Operating margins for fitness came in at $19.1 million for the second quarter, compared to $8.7 million a year ago.
Looking ahead, the company forecasted full-year 2011 earnings per share to be in the range of $0.60 and $0.75.
In another release, Life Fitness said it would promote a “Gold and Platinum” benefit program to its dealers from July 1 through Dec. 31, 2011. Officials said the program “offers 15 leading services to its Life Fitness dealers, all designed to help attract customers, reward employees, and improve operations while lowering costs.”
Normally, the benefits are reserved for dealers whose predominant share of sales consists of Life Fitness or Hammer Strength products. The limited open access will help attract new dealers, officials said.
Kellwood acquires Zobha
Diversified products company Kellwood (www.kellwood.com) announced July 27 the acquisition of Zobha, a yoga and fitness apparel and accessories company. Financial details of the deal were not disclosed.
Zobha, based out of Mill Valley, Calif., and launched in 2008, designs active and stylish apparel for women and men. The brand also sells accessories such as yoga mats, headbands and mat carriers. Its products are available in 350 retail stores in 27 countires, and at yoga studios and fitness clubs.
“Zobha is an incredible brand that serves a category of the marketplace with tremendous growth potential,” Kellwood President and CEO Michael Kramer said in a statement.
Jamie Hanna, founder and CEO of Zobha said that the partnership with Kellwood would enable the brand “to grow quickly and strategically so that we can reach more people with our beautiful product and brand that inspires an active, healthy lifestyle.”
St. Louis-based Kellwood, which is owned by private equity firm Sun Capital Partners, also owns outdoor brands Kelty and Sierra Designs.
–Compiled by David Clucas