Black Diamond Inc. reported a 9 percent increase in sales for the first quarter of 2017 reaching $41.6 million compared to $38.2 million in the same quarter last year. The increase was due to strong growth across each of the different product categories of climb, mountain and ski. Sales were also up in every channel and geographic region, while foreign exchange had a minimal impact on the first quarter.
“Our first quarter was the first clear sign that the steps we have taken to better serve our core customers are creating momentum, all while continuing to drive innovation in the current and adjacent product categories,” said John Walbrecht, president of Black Diamond in a conference call. “We grew in all of our primary product categories and across all of our major markets, which was a key goal and a significant accomplishment in the current marketplace.”
“This was highlighted by strong performance in our core product offerings, particularly in carabiners, protection, lighting, trekking poles, gloves, skis and snow safety,” Walbrecht said. “This broad-based growth was made possible by our ability to satisfy demand, which is a credit to the improvements we have made in our supply chain for 2017.”
Gross margin increased 90 basis points to 29.6 percent compared to 28.7 percent in the year-ago quarter. The increase was primarily due to a favorable mix of higher margin products and retail channels.
Due to the company’s continued realization of savings from its restructuring plan to realign resources within the organization, general and administrative expenses in the first quarter decreased 12 percent to $12.5 million compared to $14.2 million in the year-ago quarter.
Net loss in the first quarter was $1.5 million or 5 cents per diluted share, compared to a net loss of $4 million or 13 cents per diluted share last year.
Adjusted net income before non-cash items increased to $500,000 or 2 cents per share, compared to a loss of $2.2 million or 7 cents per share last year.
“We continue to anticipate our fiscal year 2017 sales to grow between 3-7 percent to approximately $153 million to $158 million compared to $148.2 million in 2016,” said Aaron Kuehne, chief administration officer and CFO. “We continue to expect gross margin in fiscal 2017 to increase approximately 300 to 400 basis points and reach between 32.5-33.5 percent compared to 29.5 percent in 2016. We also continue to expect selling, general and administrative costs including $4.5 million of cash corporate overhead expenditures to be approximately $50.5 million compared to $49.9 million in 2016. Finally, we continue to expect approximately $2.5 million in capital expenditures in 2017.”
“We expect the momentum we are experiencing for the first quarter positive results to continue into 2017 as we further our renewed focus on enhancing the Black Diamond brand. We also expect the steps we are taking in both product development and marketing will exceed our retailers’ expectations and help set up a strong selling season for 2018,” Kuehne said.
Photo courtesy Black Diamond
