For the second quarter ended June 30, Jarden Corporation, owners of Coleman, K2, Marker, Shakespeare, Völkl and many other sports and outdoor brands, reported a marginal sales increase in its Outdoor Solution segment to $754.9 million from $741.1 million in the same period of a year ago. Particular strength was reported in baseball/softball, fishing and camping.
According to the management, the segment's sales would have risen by an extra $20 million, taking the growth up to 5 percent, if mass retailers in the U.S. had placed replenishment orders with the group to keep up with consumers' demand. Instead, they relied more heavily on their own private labels in the final 12 to 15 days of the quarter.
Sales through the specialty and internet channels continued to be trending positively, the management added. The Outdoor Solutions segment's operating income increased by 6 percent to $79.1 million during the quarter.
Jarden said it registered positive organic growth in all segments of its business. It attributed this to the success of its initiatives, product innovation, geographic expansion and category extension. Diversification continued to serve well, the company said, and the seasonally appropriate spring weather helped the continued sell-through of many of Jarden's products.
The quarterly gross margin reported for the group was 30.5 percent versus 29.2 percent for the same period in 2013. Excluding extraordinary items, the adjusted gross margin was 30.8 percent as compared to 29.2 percent for the second quarter a year ago. The company's net income decreased to $52.1 million in the quarter as compared to net income of $76.4 million for the same period in 2013. Adjusted net income was $113.4 million, compared with $95.7 million.
For the six months ended June 30, net sales grew by 11.0 percent to $3.71 billion as compared to the same period in 2013. The Outdoor Solutions segment posted sales of $1,439 million, with growth of $155.5 million compared with the same period in 2013. The company reported an adjusted gross margin of 30.6 percent as compared to 28.8 percent. Adjusted net income rose to $138.5 million from $128.8 million.
Along with its financial results for the three and six months ended June 30, the company announced that it has advanced its capital management objectives by flattening and extending its debt repayment schedule through the recently completed issuance of a €300 million private offering of 3¾ percent senior notes due in 2021..