Timberland’s Q2 loss narrows, revenue down 6 percent
Timberland’s (NYSE: TBL) loss narrowed slightly in the second quarter even as revenue declined due to slow footwear sales and a dip in consumer spending in the United States.
For the quarter ended June 27, the company reported a loss of $18.9 million, or $0.32 per share, compared with a loss of $19.2 million, or $0.31 per share in the prior year quarter. The per-share figure in the 2008 quarter was based on 2.5 million fewer shares outstanding.
Revenue fell 6 percent to $209.9 million from $224.1 million in the second quarter of 2007.
North America revenue declined 13.4 percent to $99.6 million, reflecting soft consumer spending in the United States, it said. Europe revenue dipped 1.3 percent to $78.8 million, or 8.3 percent on a constant dollar basis, driven by declines in men’s casual footwear and kids’ performance footwear. Asia revenue increased 7.7 percent to $31.6 million driven by gains in foreign currency, but decreased 2.2 percent on a constant dollar basis.
Timberland said apparel and accessories revenue decreased 5.8 percent to $62.6 million, compared to $66.5 million in the second quarter of 2007, driven by anticipated declines in Timberland brand apparel partially offset by double-digit growth of SmartWool socks and apparel.
Global footwear revenue was $142.9 million, down 7.5 percent compared to the prior year, hit by declines in men’s casual footwear and boots.
Global wholesale revenue decreased 10.0 percent to $136.1 million. Worldwide consumer direct revenue increased 1.3 percent to $73.8 million, reflecting gains in outlet sales in Europe and Asia.
Timberland said it had been affected by slower spending in the United States.
Same-store sales fell 4.2 percent for domestic retail locations and dropped 6.2 percent globally.
Timberland said it expects its revenue to be flat in its third quarter and to decline for the full year. Timberland’s third-quarter outlook implies revenue of $433.3 million.
The company also said it expects operating income, excluding restructuring costs, of $45 million to $50 million.
For the year, Timberland said it anticipates its revenue will decline by mid-single-digits, partly from closing underperforming retail stores.
Under Armour’s Q2 profit falls 75 percent
Despite a 30-percent boost in sales, Under Armour (NYSE: UA) said soft margins and marketing expenses caused second-quarter profit to drop 75 percent.
Profit slipped to $1.4 million, or $0.03 per share, from $5.7 million, or $0.11 per share, in the same quarter a year ago.
Sales rose 30 percent to $156.7 million from $120.5 million.
Under Armour said gross margin declined to 45.3 percent from 49 percent because of higher sales of shoes, which have lower gross margins than apparel. Sales of shoes accounted for 29 percent of total revenue compared with 17 percent a year ago.
Marketing expenses for the second quarter of 2008 were 14.4 percent of revenue compared with 13.5 percent in the prior year.
Selling, general and administrative expenses rose to $67.6 million from $50.9 million.
Under Armour raised its income from operations outlook between $104.5 million and $105.5 million, versus a previous expectation for results between $103.5 million to $104.5 million.
It expects sales to rise between 26 percent and 28 percent from 2007, or between $765 million and $775 million.
Jarden’s Q2 earnings more than double boosted by acquisition revenue
Jarden Corp. (NYSE: JAH) said second-quarter profit jumped as acquisitions of two sporting goods companies boosted sales. Jarden is the parent company of Coleman, Marmot, K2, Marker and Campingaz, among others.
For the three months ended June 30, profit more than doubled to $43 million, or $0.56 per share, from $16.7 million, or $0.23 per share, a year ago.
Excluding reorganization and costs to integrate acquisitions, adjusted profit rose to $54.8 million, or $0.72 per share, from $44.5 million, or $0.62 per share, a year ago.
Sales rose 30 percent to $1.4 billion from $1.1 billion a year earlier. The company said sales were helped by last year’s acquisitions of Pure Fishing Inc. and K2 Inc.
CEO Martin E. Franklin said the company plans on continuing to “execute well in the back half of the year,” without cutting back on new product development and marketing.
“While we are not immune to the significant headwinds of rising costs and consumer softness affecting many companies in the consumer space, our goal is to take full advantage of the current turmoil to consolidate our leadership positions in the niche markets we serve and reinforce the relevancy of our brands and products to our customers,” Franklin said in a statement.
Sport Chalet suffers slow sales, wider loss in Q1
Sport Chalet (Nasdaq: SPCHA and SPCHB) said sales for the first fiscal quarter were down 4.8 percent, hit by soft macroeconomic conditions and to a lesser extent, new store openings by the company and competitors in certain markets.
Sales for the quarter ended June 29 were $87.1 million versus $91.6 million in the same period last year. Eight new stores not included in same store sales contributed $5.5 million in sales for the quarter while same store sales decreased 11.1 percent.
Net loss for the first quarter of 2009 was $4.5 million, or $0.32 per diluted share, compared to a net loss of $664,000, or $0.05 per diluted share, for the first quarter last year.
Gross profit as a percent of sales was 26.1 percent compared to 28.6 percent for the first quarter of last year. It said the decline was primarily due to increased rent as a percent of sales in newer stores. Selling, general and administrative expenses as a percent of sales increased to 29.8 percent from 25.9 percent in the same period last year, reflecting the decrease in comparable store sales and the expenses associated with new stores which take time to ramp up.
Garmin shares slump after Q2 earnings hit, lower 2008 outlook
Garmin Ltd. (Nasdaq: GRMN) shares dropped more than 16 percent on July 30 after it forecast limited growth for the rest of the year and said it was delaying its entrance into the cell phone market.
Shares shed $9.87 to close at $35.19, down 21.9 percent, after hitting a low of $34.51 in afternoon trading. The stock has ranged from $39.75 to $125.68 in the last year.
It earned $256.1 million, or $1.19 per share, during the second quarter, compared with $742.5 million, or $0.98 per share, during the same period a year ago.
Not including the effects of favorable foreign exchange rates and one-time items, the company would have earned $0.93 per share.
Revenue during the quarter rose 23 percent to $911.7 million on the strength of sales in virtually all of its market segments.
Automotive device sales were up 24 percent to $632 million, outdoor/fitness device sales were up 54 percent to $119 million and aviation device sales were up 15 percent to $90 million. Marine device sales were down 11 percent to $71 million.
The company said ongoing economic pressures, including gas prices, were weighing on its expectations for the remainder of the year, reducing them to $3.86 per share on $3.9 billion in revenue, down from a prior estimate of more than $4.5 billion.
Garmin also said it would not release its Nuvifone, a cell phone that includes many of the features of its Nuvi line of GPS devices, as expected in the fourth quarter. The company blamed the delay until the first half of 2009 on difficulty in meeting the specific requirements of individual cellular carriers.
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