Third Quarter Business Review Outdoor & Action Sports: Outdoor & Action Sports continued its momentum, achieving record revenues and operating income in the quarter. Total global revenues rose 37%, reflecting strong organic growth of 22% and the addition of the Timberland and Smartwool brands, which contributed $163.6 million to revenues. Organic growth in the coalition's Americas and international businesses continued at double-digit rates, rising 13% and 38% respectively. On a constant currency basis, organic revenue growth internationally was 28%.
Most Outdoor & Action Sports brands achieved double-digit growth in the quarter, with the two largest brands -The North Face and Vans - achieving global revenue growth of 22% and 25%, respectively. Growth for both brands was well-balanced, with strong gains achieved across their wholesale, direct-to-consumer, domestic and international platforms.
Our Kipling and Napapijri businesses continue to deliver exceptionally strong performance, with revenues up 30% and 23%, respectively, in the quarter. The Timberland brand also continued to show solid growth during the full quarter, with growth in both the direct-to-consumer and wholesale channels and continued expansion in the Earthkeepers collection across all regions.
Operating income for the coalition rose 29%. Operating margin was 22.3% compared with 23.7% in the 2010 quarter, reflecting a negative impact of 120 basis points from acquisition-related expenses. Third quarter operating income of $321 million included a net benefit from the Timberland acquisition of $22 million, including acquisition-related expenses of $18 million. Excluding Timberland and related acquisition costs, operating income was up 21% and the coalition operating margin was 23.5%.
marketing@alchempro.com
