May 04, 2018
Net income jumped 21% to $252,793,000 from $209,163,000 on 22% higher revenues of $3,045,446,000 vs. $2,500,340,000 in the three month stub quarter ended Mar. 31 as VFC adjusts to an Apr. to Mar. fiscal year.
A $25 million non-cash gain on change in fair value of convertible debt boosted net income to $32,715,000 against a loss of $4,280,000 in the first quarter, but licensing revenue declined 17% to $48,548,000 from $58,722,000.
A wide ranging suit filed in MA federal court claims that Puma’s Ignite, Mostro and Jamming models infringe on Nike’s Flyknit patents and that the Jamming further infringes on its Air technology patents.
The Sports segment had an operating loss of $774,000 against a profit of $10,114,000 including a $7 million bad debt writedown from the bankrupt retailer, as sales slipped 3% to $206,687,000 from $214,016,000 on weak consumer demand at major mass channel retailers, and lost shipments to Toys “R” Us.
Net income was up 55% to $21,620,000 from $13,959,000 as strong sales gains from its fishing business sent JOUT revenue 11% higher at $165,778,000 from $149,807,000 in the second fiscal quarter ended Mar. 30.
Newell adds Pure Fishing to its list of sports brands that it plans to sell in addition to Rawlings and the already sold winter sports group.
Dick’s Sporting Goods was expelled from the National Shooting Sports Foundation by a unanimous vote of the directors for its lobbying activities on behalf of stricter gun control and its decision to tighten sales restrictions in its own stores.