Jarden Corporations Outdoor Solutions segment, (JOS) which owns one of the largest portfolios of sporting goods brands in the world, grew earnings 9.4 percent in the fourth quarter despite essentially flat earnings.
JOS revenues reached $617.9 million in the fourth quarter ended Dec. 31, 2012, up just 0.5 percent from the fourth quarter of 2011. Segment earnings, however, rose 9.4 percent to $61.7 million, while operating earnings – which include restructuring charges, stock based compensation and depreciation and amortization – increased 5.3 percent to $41.2 million.
JOS returned to organic growth during the quarter and was also able to show organic growth for the year, despite the lingering effects of the poor 2011/12 ski season, said CEO Jim Lillie. In February, 2012, Jarden forecast sales of its K2, Marker and Volkl ski and snowboard products would decline by 5 to 10 percent, or up to $50 million, in 2012.
Lillie said the winter sports business is still recovering from the 2011/12 season, particularly given another late state to winter in North America and Europe this year.
I think the vast majority of these retailers have a cautious outlook, because theyre not well-financed, not well-capitalized, Lillie said. I think this year, which is a little bit different than in prior years, well probably build a little extra inventory, in the event it’s a healthy snow season, which will counterbalance the retailers taking a conservative outlook. So that, we have product there that were confident will move should the snow arrive. But, again, were budgeting conservatively across winter sports.
While every JOS business performed well during the quarter, Lillie called out strong growth from Pure Fishing, primarily led by higher than expected sales of new fishing rods and reel products under the Abu Garcia and Shakespeare brands. Pure Fishings portfolio also includes the All Star Rods, Berkley, Fenwick, Hodgman, Johnson, JRC, Mitchell, Penn, Pflueger, Sebile, Spiderwire, Stren, Trilene and Ugly Stik brands.
Lillie said targeted growth initiatives for team sports included Rawlings new line of football helmets. During the Super Bowl, 10 players wore Rawlings new line of NRG helmets compared to none in 2012.
Jarden Technical Apparel, which includes products from ExOfficio, Marmot and Zoot, again delivered double-digit revenue growth for the full-year boosted by several new products and styles in jackets and gloves, including the top-selling PreCip jacket.
JOS also owns Campinggaz and The Coleman Company, which owns the Aerobed, Stearns, Sevylor and Maddoggear camping and water sports brands.
Moments after releasing its fourth quarter earnings, Jarden Corporation’s board of directors approved a 3-for-2 stock split. Stockholders of record at the close of business on Feb. 25, 2013 will receive one additional share of Jarden common stock for every two shares of Jarden common stock owned on that date.
