Sales were brisk in the second quarter for both vendors and retailers in the outdoor industry. However, margins contracted during the period, forcing declines in profits and return on sales. Inventories grew at nearly the pace of sales on a consolidated basis, a good sign as the industry continues to find stasis amid increasing costs for
everything from raw materials to transportation and utilities.
The decreased margins led to consolidated vendor net income that was
down in the mid-single-digits. Removing Jarden Corp.s profit growth, which was goosed by its K2 acquisition, pushes the overall decline even further south. Retail profits faired even more poorly with only Lululemon posting a bottom line improvement for the second quarter.