Jarden Corp. reported a 3.6 percent drop in sales in the third quarter to $654.5 million for its Outdoor Solutions segment, which includes Coleman, K2, Völkl, Marker, Dalbello, Marmot, Berkley, Shakespeare, Rawlings and about 15 other sporting goods brands. Organically, sales rose by 3.7 percent. The segment's earnings inched up by 1.4 percent to $88.9 million, resulting in an increase in the profit margin of 0.67 percentage points to 13.6 percent.
The management indicated that the group's sales of fishing tackle products were pressured by Japanese brands that have been taking advantage of the strength of the dollar to compete in the market. It added that the sell-in of ski products was on target for the upcoming winter season.
Overall, the group posted an 12.0 percent increase in net income to $168.2 million on 5.3 percent higher total revenues of $2,256 million for the quarter, with organic and adjusted growth of 6.0 percent that exceeded the management's long-term forecast. The gross margin contracted by 0.4 percentage points to 31.9 percent because of currencies and the diluting effect of the Waddington Group's acquisition, but the group's operating margin went up by 0.9 percentage points to 13.4 percent of sales.
For the first nine months of this year, Outdoor Solutions' profit margin was down by 0.94 percentage points to 10.5 percent of sales, which were off by 4.0 percent from the year-ago period to $2,033 million. Organically, segment sales were up by 3.7 percent during the nine-month period.