Camelbak Products net sales declined 3.4 percent to $33.5 million during the third quarter ended Sept. 30, compared to the same period in 2013, its parent company Compass Diversified Holdings Inc. reported.
The decrease in net sales is a result of a decrease in gross sales in Hydration systems ($2.0 million), Accessories ($0.3 million) and Gloves ($0.5 million) offset in part by increased gross sales in Bottles ($1.4 million). The increase in Bottle sales during the three months ended Sept. 30, 2014 compared to the same period in 2013 is primarily attributable to an increase in international and domestic bottle sales including, eddyTM, the Podium line of insulated bottles, Chute, an ergonomic high-flow water bottle, the introduction of the filtered pitcher, Relay, and the continued expansion in its customer base, including new and existing customers, for all existing product lines. The decrease in Glove sales during the same period is the result of timing of government orders which are sporadic in nature. The decrease in sales of Hydration systems during the three months ended Sept. 30, 2014 compared to 2013 is due to the timing of shipments for certain pack models and decreases in military sales.
Sales of Hydration systems and Bottles represented approximately 86% of gross sales for the three months ended Sept. 30, 2014 compared to 84% for the same period in 2013. Military sales were approximately 26% of gross sales for the three months ended Sept. 30, 2014 compared to 30% for the same period in 2013. International sales were approximately 19% of gross sales for the three months ended Sept. 30, 2014 compared to 18% for the same period in 2013. The decrease in Military sales is attributable to the decrease in demand as a result of the drawdown of U.S. combat troops.
Cost of sales for the three months ended Sept. 30, 2014 was approximately $19.8 million compared to approximately $19.5 million in the same period of 2013. Gross profit as a percentage of sales decreased to 41.0% for the quarter ended Sept. 30, 2014 from 43.8% in the quarter ended Sept. 30, 2013. The decrease is principally attributable to increased bottle supplier costs not passed on to customers and an unfavorable sales mix in Hydration systems.
Selling, general and administrative expense for the three months ended Sept. 30, 2014 decreased to approximately $8.6 million or 25.7% of net sales compared to $9.3 million or 26.9% of net sales for the same period of 2013. This decrease is attributable to the timing of certain cost incurrences and the closing of an international sales office.
Income from operations for the three months ended Sept. 30, 2014 was approximately $2.8 million, a decrease of $0.7 million when compared to the same period in 2013, based on the factors described above.
