American Recreation Parent Boosts Net Income 18.5% in Q1…

Kellwood, Inc. first quarter sales increased 2.1% to $686.1 million, compared to $672.3 million last year due to a combination of organic growth of $5 million, or approximately one percent, and the acquisition of Phat Fashions which provided an additional $9 million in sales.

All of the organic growth for the quarter came from the Women's Sportswear segment, up 6.3%, and the Men's Sportswear segment, up 1.0%.

Kellwood’s American Recreation division, which houses the Sierra Designs, Kelty, and Slumberjack brands, is grouped into the ‘other soft goods’ category in company financial statements. The category posted a 19.2% decline in sales to $120.0 million compared to $143.2 million last year. In a conference call with analysts, Kellwood CEO Hal Upbin said that American Rec.’s performance “from both a margin and operating perspective” was not an issue.

Net earnings for the quarter climbed 18.5% to $25.0 million or 90 cents per diluted share, versus $21.1 million, or 80 cents per share last year. The increase in earnings was driven by a 220 basis point increase in gross margin to 22.5% versus 20.3% last year. SG&A in the first quarter increased to 15.6% of sales, versus 14.0% last year.

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American Recreation Parent Boosts Net Income 18.5% in Q1…

Kellwood, Inc. first quarter sales increased 2.1% to $686.1 million, compared to $672.3 million last year due to a combination of organic growth of $5 million, or approximately one percent, and the acquisition of Phat Fashions which provided an additional $9 million in sales. Kellwood’s American Recreation division, which houses the Sierra Designs, Kelty, and Slumberjack brands, is grouped into the ‘other soft goods’ category in company financial statements. The category posted a 19.2% decline in sales to $120.0 million compared to $143.2 million last year. In a conference call with analysts, Kellwood CEO Hal Upbin said that American Rec.’s performance “from both a margin and operating perspective” was not an issue.

Net earnings for the quarter climbed 18.5% to $25.0 million or 90 cents per diluted share, versus $21.1 million, or 80 cents per share last year. The increase in earnings was driven by a 220 basis point increase in gross margin to 22.5% versus 20.3% last year.

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