Jarden Corp. President and CEO Jim Lille reported that retail sales of its camping products have been strong since April and that it expects to make up fishing sales lost to Midwest flooding over the course of what forecast to be a long, hot summer.
Our key business for this quarter is Coleman and it’s doing very well, both domestically and internationally, Lillie told analysts who assembled last week at the William Blair & Co. Growth Stock Conference in Chicago.
Lillie said sales were very strong at mom-and-pop stores and local and regional chains. He said he sees no downturn in consumer spending this year on Jardens products, which include Berkley, Ugly Silk and Shakespeare fishing products, ExOfficio and Marmot apparel, K2 bikes and Rawlings ball sports products as well as small household appliances and read to assemble furniture.
I know some companies that talked about people trading down, said Lillie. Were actually seeing people come back to certain of our products. We sell $300 and $400 carbon fiber softball bats that beginning this time last year we couldnt keep on the shelves, whereas, a year before that I had a warehouse full of them. I think that in our categories, people are tired of not spending money.
Increased sales of camping items to Japan have made up for a $20 million to $25 million decline in fishing revenues from flooding in Midwest. However, Lillie said the company may be able to recapture some of those lost sales given forecasts for a hot, long summer. As a result, JAH has not yet lowered projections for its fishing business for the year.