Outdoor financials: Timberland posts wider loss in Q2, plus Rocky Brands, Under Armour
Despite revenue growth, Timberland said it posted a wider loss in the second quarter, Rocky Brands said it swung to a profit in the second quarter, and Under Armour said its second-quarter profit more than doubled.
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Timberland posts wider loss in Q2
Despite revenue growth, Timberland (NYSE: TBL) said it posted a wider loss in the second quarter dragged down by a one-time charge.
In the quarter ended July 2, its net loss was $23.5 million, or $0.44 per share, compared with a loss of $19.2 million, or $0.34 per share, in the year-ago period. The results include a $13.2 million non-cash, pretax charge for the impairment of certain goodwill and intangible assets.
Revenue was $189 million, up from $179 million in the year-ago period, as
revenue growth and gross profit margin improved in all three regions: North America, Asia and Europe.
The North American region experienced a 6.6 percent increase in revenue to $92 million compared with the prior year, fueled by growth in clothing and accessories, it said. Revenue in its European business increased 1.4 percent to $66.8 million, while revenue in Asia was up 9.6 percent to $30.2 million compared with the year-ago period.
Global footwear revenue increased 3.7 percent to $131.6 million compared with the second-quarter of 2009. Clothing and accessories revenue rose 10.2 percent to $52.1 million compared with the year-ago period.
The company added that global wholesale revenue rose 8.3 percent to $117.5 million compared with the prior year, because of double-digit growth in North America and Europe, partially offset by declines in Asia.
Rocky’s Q2 swings to profit
Rocky Brands (Nasdaq: RCKY) said it swung to a profit in the second quarter on rising sales, wider margins and tougher expense controls.
It earned $523,610, or $0.08 a share, versus a loss of $1.4 million, or $0.25 a share, last year.
Revenue grew 8 percent to $55.2 million from $51.2 million.
The company also completed a stock offering last quarter that netted more than $14 million, which was used to pay off the majority of its high-interest long-term debt.
Under Armour more than doubles Q2 profit
Under Armour (NYSE: UA) said its second-quarter profit more than doubled on strong sales of both men’s and women’s clothing, as well as accessories.
For the three months ended June 30, Under Armour earned $3.5 million, or $0.07 per share, compared to $1.4 million, or $0.03 per share, last year.
Revenue climbed more than 24 percent to $204.8 million from $164.6 million.
The company also nearly doubled its cash and equivalents, which were $156.1 million at the end of the quarter.
Operating income rose 104 percent to $6.9 million compared with $3.4 million in the prior year’s period. Gross margin increased to 48.8 percent compared with 44.8 percent in the prior year’s quarter.
Also, the company boosted its full-year outlook, saying it now expects to earn between $1.11 per share and $1.13 per share. It had previously expected to earn $1.05 to $1.07 per share.
It also adjusted its full-year sales forecast to a range of $990 million to $1.01 billion – about a 16-percent increase from last year’s results. It had previously expected revenue between $965 million and $985 million
–Compiled by Wendy Geister
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