Kellwood Company Q2 net sales increased 1.3% to $465.4 million compared
to $459.6 million in the second quarter last year. The company’s net
loss was $65.8 million, or $2.54 per diluted share, versus net earnings
of $7.2 million, or 28 cents per diluted share, in the second quarter
last year.

Kellwood’s “Other Soft Goods” segment, which includes American
Recreation continued its strong performance in the second quarter of
2007 achieving a 16% increase in net sales to $97.2 million. Operating
earnings grew 28% to $12.0 million in the second quarter of 2007.
Operating earnings as a percent of net sales increased to 12.3% from
11.2% last year driven by the “continued strong performance” at
American Recreation Products divisions.

In addition, Kellwood announced and completed the acquisition of Royal
Robbins during the second quarter. This represents the company's
initial foray into the outdoor apparel sector. Royal reported sales of
approximately $30 million in fiscal 2006 and Kellwood management
expects to expand Royal Robbins presence through its “existing
specialty channel of distribution.” Management also sees opportunities
to create synergies between Royal Robbins and Sierra Design's technical
apparel.

In other Kellwood news, the Boulder Daily Camera reported that Royal
Robbins, which was recently acquired by Kellwood Corp., may join
Slumberjack in shifting headquarters to Boulder, CO. However, officials
at Kellwood's American Recreation division say that this is not so.
Eric Reinsfelder, vice president of marketing for American Recreation
Products, Inc., parent company of Royal Robbins, said “We have no plans
to move Royal Robbins to the Boulder, Colorado area or out of it's
current Modesto headquarters.”

In May, Kellwood announced plans to move the Slumberjack sleeping bag
business from St. Louis to Boulder to join its Kelty operation. At the
time, it also announced the hiring of Geoff O’Keeffe as Slumberjack's
president.  According to the Boulder County Business Report,
Slumberjack will be moving into a 4,900 square feet space at 6235
Lookout Road in the Gunbarrel neighborhood.

In addition, Kellwood is expanding its Boulder-based Kelty business by
3,700 square feet for a total of 11,500 square feet in the same
building. Meanwhile, the article states that while Kellwood's Sierra
Designs tent business is located in Louisville and will remain there,
Royal Robbins, which is based in Modesto, California, may move to the
Boulder offices.