For the three months ended Sept. 30, Jarden Corp.'s Outdoor Solutions business posted sales of $679.1 million, up by just 1.2 percent from the third quarter of 2013, and the operating profit of the segment fell by 1 percent to $66.4 million.
Among the drivers for the continued sales growth of the outdoor segment, the company named innovative products such as the new Madshus Redline Carbon Classics ski, equipped with proprietary and power technology. These skis use an embedded radio frequency identification (RFID) tag that captures manufacturing data, to optimize production and ski pairing. Additionally, RFID tags work with a smartphone app that tracks and shares ski location, distance, average speed and distance traveled.
The management is confident that the Outdoor Solutions segment will return to a growth of objective of 3 to 5 percent as it moves through 2015 and 2016. In the shorter term, the parent company of K2, Völkl, Ride, Marmot, Coleman and many other sports firms is predicting a moderate winter sports season this year, considering last year's regionally mixed winter season and its philosophy is to meet planned sales rather than to build for an exceptional season in the hopes of achieving incremental sales.
Meanwhile, Jarden made the first shipments during the third quarter from a new $40 million factory in China where it has consolidated the production of skis, snowboards, ski bindings and showshoes. It is expected to work on a just-in-time model.
Jarden's total net sales grew by 19.0 percent to $2.1 billion in the latest quarter, marking the first third quarter in the company's history in which its revenues have exceeded the two billion dollar mark. Consolidated sales growth was driven by branded products, which jumped 50 percent. Organic net sales for the group increased by 6.4 percent. Consolidated net income was reported at $108.6 million, as compared to $94.9 million in 2013. The reported gross margin was 31.4 percent, up from 29.1 percent for the same period in 2013.