K2 forecasts adjusted diluted EPS of $0.90 to $0.94
08 Mar '07
3 min read
Our Apparel and Footwear segment for 2006 generated solid top line growth in the Marmot and Ex Officio brands, but profitability was impacted by higher start-up expenses in our new distribution center, by higher investment to expand our Marmot brand, coupled with flat domestic sales for our skateboard shoes and apparel business.
For 2007, we expect to continue to benefit from our diversified product and brand offerings, with our forecast for Adjusted diluted earnings per share to grow despite an anticipated decline in winter products, due to the warm winter to date. We expect that our 2007 growth will be driven by continued gains in Team Sports, by a strong recovery in profit for Apparel and Footwear, and due to renewed profitability growth in Marine and Outdoor, which was relatively flat in 2006.
We recently closed two highly strategic acquisitions of premier products and brands - Sevylor inflatable products in December and Penn fishing tackle in January. Although these new businesses are not material from a sales standpoint, they have the future potential to be accretive to our Marine and Outdoor segment after we have completed integration."
marketing@alchempro.com
