Shimano and Jarden Corporation see sales rise
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In sharp contrast to the fortunes of its joint venture business partner Rapala, Shimano has seen its fishing sales in the first half of 2014 rise by 13.4% compared to the same period last year.
And while its Finnish counterpart was revising its profit forecast downwards for the year, Shimano has upgraded its expectations from 287,000m yen to 310,000m. It says that good weather in May and June in its home market of Japan resulted in robust sales – especially of its spinning reels.
The tackle giant also reported ‘brisk’ overseas sales in Europe, North America and Oceania, partly due to the introduction of new products.
The giant Jarden Corporation, owner of Pure Fishing, saw its sales for the second quarter of 2014 grow 12.3% to $1.98 billion thanks to a healthy contribution from its Outdoor Solutions (OS) division.
The recreational fishing group which features some of the world’s most iconic brands, including the likes of Hardy, Shakespeare, Penn, Mitchell, and Berkley, is part of the OS sector which reported earnings of $100.2 million – a 12.8% leap compared to the previous second quarter last year.
“We are progressing this year with another quarter of solid performance,” said Martin E. Franklin, Executive Chairman. “We posted positive organic growth in all segments and continued expansion in gross margins, giving us momentum as we enter the important back half of the year.
“The broad based organic growth experienced in the quarter was primarily driven by the success of our initiatives, product innovation, geographic and category expansion.”
Pure Fishing’s product innovation was highlighted at trade fishing exhibitions across the world this year with awards at ICAST, EFFTEX and the Australian Fishing Trade Association (AFTA) show.
North America’s best known and most iconic outdoor sports retailer, Cabela’s, saw its same store sales decline 14.2% in the second quarter of the year compared to the same period last year – a spell which experienced a huge surge in gun and ammunition sales.
“Second quarter profit and record 9.5% operating margins were excellent,” said Tommy Millner, Cabela’s Chief Executive, who also reported that new format stores continued to outperform the company’s traditional legacy outlets. He added that plans to open 13 to 15 new stores per year over the next several years remained on track.
ICAST New Product Showcase winner, Columbia Sportswear, saw its second quarter sales grow 16% compared to the same period last year.
Tim Boyle, the company’s President and Chief Executive, said: “We are very pleased with our performance through the first half of 2014 and anticipate strong Columbia and Sorel brand momentum in the second half, particularly in North America. In addition, our sales continued to stabilise in key Europe-direct markets that are a focal point of our ongoing efforts to drive renewed growth and improved profitability.”
Columbia won the Footwear award at ICAST in Orlando, Florida.