Jarden Corp. expects sales of its K2, Marker and Volkl ski and snowboard products would decline by 5 to 10 percent, or up to $50 million, this year due to the unseasonably warm start to winter in the fourth quarter in both the United States and Europe.
The brands are among those owned by Jarden’s Outdoor Solutions segment, which reported last week that it eked out net sales of $614.5 million in the fourth quarter ended Dec. 31, 2011, up 1.7 percent.


The modest growth was attributed not only to the late winter, but also the effect of unfavorable exchange rates and a pulling forward of approximately $35 million in winter sports sales from the fourth to the third quarter. After adjusting for the latter two effects, sales at the segment, which is the world’s largest supplier of sporting hardgoods, rose four percent on an organic basis.


Sales of Outdoor Solution’s team sports products (Rawlings) and technical apparel (Arc’teryx and Marmot) grew in the double digits. The growth in team sales was attributed to healthy POS and specialty sporting goods retailers and continuing demand for new products, including Rawlings BBCOR bats and recently launched Worth softball and baseball bats.


Marmot performed in line with the company’s accelerated growth plans for technical apparel and continues to take market share, said CEO Jim Lillie. Coleman, meanwhile, had success with its Instant Tents and the CPX6 Lighting System. The latter did particularly well in Japan due to both disaster recovery-related sales and growing participation in outdoor recreation.


Segment earnings at Outdoor Solutions reached $56.4 million in the quarter, up 18.0 percent from $47.8 million. After taking a one-time restructuring charge of $9.7 million, operating earnings came in at $39.1 million, up 74.6 percent from $22.4 million a year earlier. Operating margins reached 6.4 percent, up 370 basis points. Commodity prices had a negligible impact on performance and remain relatively stable.


For the full year, Outdoor Solutions reported net sales of $2.77 billion, up 10.1 percent from 2.52 billion in 2010. Operating earnings for the year came in at $276.4 million, up 20.9 percent from $228.6 million in 2010.


Jarden’s EPS guidance for 2012 implies earnings growth in the six to 10 percent range on an as adjusted basis, despite continuing headwinds.


“In addition to the $80 million to $90 million of estimated negative FX impact on sales now expected, we estimate the warm winter will negatively impact sales by $30 million to $50 million in 2012,” said Lillie. 


That means Jarden’s Branded Consumables and Consumer Solutions segments, will have to pick up the slack in 2012. Those two segments own a wide range of kitchen, leisure, safety and other home product brands such as Ball (canning jars) Crock-Pot, Mr. Coffee, Oster, Sunbeam, Bicycle and Hoyle (playing cards) and First Alert.


“While we haven't seen a lot of open to buy expansion, we feel that this is a reasonably healthy retail environment and normal retail patterns are going to emerge,” Lillie said of the overall retail outlook.

Jarden Outdoor Solutions brands include Abu Garcia, Aero, Berkley, Campingaz and Coleman, ExOfficio, Fenwick, Gulp!, K2, Marker, Marmot, Mitchell, Penn, Rawlings, Shakespeare, Stearns, Stren, Trilene, Volkl and Zoot.