Jarden Corporation reportedly increased net sales 30% to $1.4 billion for the second quarter, compared to $1.1 billion for the same period in the previous year. The Pure Fishing, Inc. and K2 Inc. businesses are included in the results of operations from their dates of acquisition in April 2007 and August 2007, respectively.
For Jardens second quarter, the company reported net income of $43.0 million, or 56 cents per diluted share, compared to net income of $16.7 million, or 23 cents per diluted share, in the same period last year. On a non-GAAP basis, adjusted net income was $54.8 million, or 72 cents per diluted share, compared to $44.5 million, or 62 cents per diluted share, for 2007.
In a corporate earnings conference call on July 29, Jarden Vice Chairman and CFO Ian Ashken reported organic sales grew by approximately 4%, helped by continued strength of its international businesses. “Jarden Outdoor Solutions attained overall organic growth on a pro forma basis with our Coleman business growing organically about 1% despite cash-free softness.”
Jarden chairman and CEO Martin Franklin responded to questions regarding retailers changing interests in the outdoor market, “What has happened, and this is something that we said for the last five years we thought would happen, is that retailers have had an awakening of some sort and a lot of categories have moved away from private label because it’s inhibited innovation. It hasnt performed as well at retail and obviously from an economic standpoint although the products are cheaper; theyre stuck holding the last 20% of products that they cant sell because it’s their own inventory as opposed to a vendor’s.”
He continued, “The reality is there’s been a trend towards brand. Youve seen this in the major retailers and what theyve said. The brands have tended to perform better at retail for the customer base. And that has enhanced our business.”
