Kellwood CEO Hal Upbin went into real detail about the companys performance at the Piper Jaffray conference, but glossed over the American Recreation division. He did mention that American Rec. is currently the number two player in the U.S. camping market with $170 million in annual sales, second only to Coleman.
He also said that about 88% of American Rec.s sales are branded, and 12% are private label. American Rec.s sales only make up 7.4% of Kellwoods $2.3 billion in annual sales. The Wenger and Eddie Bauer brands were both listed as brands with “good growth potential.” The remaining Outdoor brands, Sierra Designs, Kelty, Slumberjack, and Wenzel, were not mentioned in the list of brands with growth potential.
Kellwood has targeted organic sales growth for 2004 at 8%, with an additional $150 million to $300 million in acquisition-based growth. Upbin did not address the rumors about Kellwood acquiring Dockers from Levis, but did reassure investors that he “would not over-leverage the company.”