Apparel & footwear maker K2 Inc net sales up 20% for Q2
21 Jul '05
7 min read
Richard Heckmann, Chairman and Chief Executive Officer, said, "They had a solid quarter with over 7% organic growth driven by strong results in Marine and Outdoor, Team Sports, and Apparel and Footwear.
The only category that experienced softness was Action Sports, due principally to the downturn in the paintball market. They continued their margin expansion trends, with the gross margin moving up to 33% versus 31% due largely to an improved merchandising mix in team sports and apparel and footwear.
Their new product pipeline continues to deliver, as evidenced by the introduction of their new Rawlings Coolflo batting helmet.
As the official batting helmet to Major League Baseball, every player wears a Rawlings batting helmet and almost 75% of the major league players in the All Star game wore their new Coolflo helmets, and they are confident that their emphasis on product development will result in continued organic growth."
Review of 2005 Second Quarter Sales and Profit Results
Comparable Sales Trends K2's net sales in the second quarter of 2005 were $268.9 million, excluding net sales of $32.6 million in the aggregate from businesses acquired by K2 after the 2004 second quarter. K2's net sales in the second quarter of 2004 were $251.0 million, which reflects a sales increase of 7.1% in 2005 excluding the impact of these acquisitions.
Profit Trends Gross profit as a percentage of net sales in the second quarter of 2005 increased to 33.1%, as compared to 30.8% in the comparable 2004 period. The improvement in the 2005 second quarter was attributable to higher gross margins in the Team Sports and Apparel and Footwear segments.
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