Home / Knowledge / News / Apparel/Garments / Arctic Cat Q1'FY15 net sales mount 19% to $143.6mn
Arctic Cat Q1'FY15 net sales mount 19% to $143.6mn
25
Jul '14
Arctic Cat Inc reported net earnings of $3.6 million, or $0.27 per diluted share, for the fiscal first quarter ended June 30, 2014, on record net sales of $143.6 million. The company recorded a severance charge in the 2015 first quarter that reduced earnings by $0.08 per diluted share. 
 
Excluding this charge, the company’s first quarter earnings totaled $0.35 per diluted share, as adjusted. In the prior-year quarter, Arctic Cat had record net earnings of $5.5 million, or $0.40 per diluted share, on net sales of $120.8 million.
 
Highlights: 
-Net sales up 19 percent to $143.6 million;
-Net earnings of $0.27 per diluted share; adjusted net earnings totaled $0.35 per diluted share, excluding $0.08 severance charge;
-Company maintains full-year sales and earnings outlook for fiscal 2015, excluding severance charge
 
Commented Christopher Twomey, Arctic Cat’s chairman and chief executive officer, “We had record sales for a first quarter, with strong contributions from snowmobile sales. We shipped a large percentage of our lower-margin OEM partner models in the quarter. Sales of ATVs and side-by-sides were lower in the first quarter, as planned, to reduce dealer inventories ahead of our ATV dealer show in September.”
 
Added Twomey, “Higher sales were not enough to overcome the unfavorable Canadian currency and the planned increase in OEM sales in the 2015 first quarter, resulting in lower profitability compared to record earnings in the year-ago period. Going forward, we remain focused on increasing sales this fiscal year by introducing innovative new products, as well as continuing to leverage the company’s operating efficiency.”
 
First-Quarter Operating Review
Arctic Cat’s fiscal 2015 first-quarter net sales rose approximately 19 percent to $143.6 million, chiefly due to higher snowmobile sales to its OEM partner, in addition to increased sales from its parts, garments and accessories (PG&A) business.
 
Gross profit margin in the 2015 first quarter was 21.4 percent compared to 24.1 percent in the prior-year quarter. The gross profit margin decline of 270 basis points stemmed primarily from the unfavorable Canadian currency exchange, as approximately 30 percent of Arctic Cat’s annual sales are to Canada. Also impacting gross margin in the quarter were lower-margin OEM sales.
 
The company continued to invest in research and development to ensure a strong pipeline of new products and technologies. Operating expenses as a percent of sales were 17.6 percent compared to 17.1 percent. General and administrative expense includes the severance charge of $1.5 million for Arctic Cat’s former CEO, who left the company on May 30, 2014. Operating profit in the 2015 first quarter was $5.6 million compared to $8.5 million in the same quarter last year. Excluding the charge, Arctic Cat’s operating profit was $7.1 million, as adjusted.
 
Click here to view full results.
 

Arctic Cat Inc

Must ReadView All

Courtesy: American Apparel

Apparel/Garments | On 25th Feb 2017

Gildan to make some American Apparel products outside US

Gildan Activewear, which recently acquired US fashion brand American...

Courtesy: Kolon Sport

Apparel/Garments | On 25th Feb 2017

Kolon Sport to set up JV with ANTA for Chinese market

Kolon Sport, an outdoor gear and clothing brand of Korea based Kolon...

Designer Karishma Jumani with Niraj Jawanjal, founder and director of IIFW. Courtesy: IIFW

Textiles | On 25th Feb 2017

IIFW to bring together premium lingerie brands

India Intimate fashion Week (IIFW), dedicated to showcasing the...

Interviews View All

C Kamatchisundaram
Voltas

ITME is an occasion not only to receive new leads but also to work on...

Ghanshyam Ghoghari
Kimora Fashion

Bridalwear is not about reds and whites anymore

Sonia Agarwal
Whitenife

‘The terms eco-friendly and organic are common but everyone perceives them ...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
February 2017

February 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search