Apparel & footwear maker K2 Inc net sales up 20% for Q2

21 Jul '05

7 min read

Operating income as a percentage of net sales for the second quarter of 2005 was 2.8% compared to 5.0% in the comparable 2004 period. Selling, general and administrative expenses were 30.3% of net sales in the second quarter of 2005 as compared to 25.9% of net sales in the prior year's second quarter.

Higher selling, general and administrative expenses in the quarter are principally attributable to the acquisitions of Volkl, Marker and Marmot in the third quarter of 2004, as these product lines have higher levels of fixed expenses as compared to K2's other business lines, and are seasonally slow from a sales standpoint in the first and second quarters.

Second Quarter Segment Review
Due to the acquisitions of Ex Officio and Marmot in the 2004 second and third quarters, respectively, K2 formed an Apparel and Footwear segment in the 2004 third quarter that also includes Earth Products. Earth Products was formerly included in the Action Sports segment.

Marine and Outdoor
Shakespeare fishing tackle and monofilament, and Stearns marine and outdoor products, generated net sales of $130.4 million in the second quarter of 2005, an increase of 21% from the comparable quarter in 2004. Sales increases were driven by growth in water-ski vests, rainwear, inflatables, reels, kits and combos, antennas and fish line and the acquisitions of All-Star rods and Hodgman waders during the second quarters of 2004 and 2005, respectively.

Team Sports

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