Sporting Goods Industry News for February 16, 2018
The net loss was $90,269,000 for the fourth quarter ended Dec. 31 against income of $264,333,000 on a 20% gain in sales to $3,624,804,000 compared to $3,020,107,000; however, the quarter results adjusted for the tax impact and the contribution from the Williamson-Dickie acquisition would have been income of $0.98 per share ($392.4 mm) compared to $0.90 per share ($379.9 mm) last year excluding impairment charges of $79.6 million and restructuring charges of $55.0 million.
Play segment sales increased 7% in the final quarter to $563.3 million from $528.5 million driven by growth from Coleman, Contigo, Marmot and team sports but fishing declined. Core sales gained 5%.
The famous lifetime no questions asked guarantee, which L.L. Bean revised last week after years of abuse by a handful of customers, is now the target of a class action suit in N. IL federal court arguing that many consumers made purchases with this guarantee as a critical factor in their decision and the retailer, after extensively advertising the guarantee, cannot revise it.
Net loss improved to €3.7 million ($4.4 mm) from a loss of €10.2 million in the second half ended Dec. 31 on revenues that declined 4% to €112.4 million ($132.4 mm) from €117.5 million at the Finnish fishing equipment maker.
Specialized Bicycle Components is recalling about 6,200 Allez (Base), Allez Sport, and Allez Elite road racing bicycles because the fork can break.