Coleman, Team Drive Jarden’s Outdoor Q2 Revenues

Brands in the segment include: Abu Garcia, Aero, Berkley, Campingaz and Coleman, ExOfficio, Fenwick, Gulp!, K2, Marker, Marmot, Mitchell, Penn, Rawlings, Shakespeare, Stearns, Stren, Trilene, Volkl and Zoot.
On a conference call with analysts, Ian Ashken, Jarden’s vice chairman and CFO, said sales Jarden’s Outdoor Solutions were up 3 percent on an organic basis, excluding the impact of foreign exchange movements.
“This growth was fueled by particularly strong sales at Coleman, both domestically and internationally, and solid performances in our Jarden Team Sports, and Technical and Power businesses,” said Ashken. “Coleman also experienced a sales lift in Japan, in response to continuing natural disaster relief efforts.”

Ashken said these strong performances offset weakness in its fishing business, which was adversely impacted by the floods in the south and midwest states, and the disasters in Japan. The negative impact of weather on fishing sales in Q2 also impacted the segment’s overall margins since fishing is one of the higher-margin businesses in the segment.

Said Ashken, “We expect that our fishing business will bounce back in the second half of the year, as more normal weather patterns have returned, and are predicted to continue through the balance of the summer.”

James Lillie, CEO, President and COO, added that Coleman’s strength domestically was driven primarily by tents, coolers and sleeping bags. Coleman’s CPX 6 lighting systems and Instant Tents was particularly cited as continuing to experience strong sales activity.

“Coleman has benefited from continuing stay-cation trends and lifestyle changes amongst consumers this season, as evidenced by strong demand for camping permits,” added Lillie. “Coleman also experienced a sales lift in its international business, as a result of continued relief efforts in Japan, new product introductions, and favorable FX movements.”

He said the Jarden Team Sports business, including Rawlings as well as DeBeers, Miken and Worth, “also had a successful quarter, demonstrated our commitment to investing in innovative new products to improve their performance of outdoor enthusiasts.”

 

He highlighted the new Rawlings new 5150 BBCOR bat that he said helped both the University of South Carolina and the University of Virginia teams reach the top rankings in their respective divisions. The Miken Freak FX 700 line of bats and a new line of NRG Quantum football helmets were also well received. Lillie also cited Zoot’s sponsorship of the Dextro Energy Triathlon ITU World Championship Series in Hamburg, Germany earlier in July.

“The strong results of the Coleman and Jarden Team Sports illustrate the resilience provided by diversification, as they helped to offset the adverse impact of weather in Q2 on our fishing business, caused by the floods in the south and midwest states, and the natural disaster in Japan,” said Lillie.

Overall, net sales for Jarden Corp. increased 8 percent in the quarter ended June 30, to $1.7 billion. Jarden’s  Consumer Solutions segment (Sunbeam, Mr. Coffee, etc.) grew 2.4 percent to $736.0 million while its Branded Consumables segment (First Alert, Ball, etc.) advanced 14.8 percent to $820.1 million. On a non-GAAP basis, adjusted net income for the quarter increased 5.7 percent to $79.7 million, or 89 cents per share.