May 02, 2018
The shooting sports wholesaler is another casualty of the 2016 presidential election, when it had borrowed to stock up expecting a spike in demand after a Clinton victory. Instead, sales fell 30% in 2017, putting the company in violation of its fixed charge coverage ratio covenants.
Profit fell 19% to $67.9 million from $83.5 million for the quarter ended Apr. 1 on a 3% shortfall in sales to $647.3 million from $665.4 million with both years containing about $6.5 million in restructuring and acquisition related expenses.
The retail trade group, while endorsing the Administration’s effort to knock down China’s trade barriers, said its research shows that the proposed $50 billion in tariffs currently on the table will reduce U.S. GDP by nearly $3 billion while destroying 134,000 jobs, meaning that four jobs would be lost for every job saved by the tariffs.
Net loss expanded to $80,877,000 from a loss of $60,079,000 in the first quarter on revenues that were off 17% to $247,865,000 from $298,942,000 with strong early sell-through of the $199 Versa smartwatch that combined with the Ionic launched last year to account for 30% of total revenue.
Outdoor segment sales jumped 24% to $144,258,000 from $115,875,000 in the first quarter driven by strong sales of adventure wearables.
Revenues increased 5% to $170.9 million at Olin’s Winchester business from $162.6 million on higher military sales, which more than offset lower commercial sales.
David Reichert, who was fired as a salesman in 2014, defrauded Nike of $550,000 by overriding the company’s discount system with 25-65% discounts on sales to two companies that he secretly owned rather than the usual 3-7% discount, according to a charge by the U.S. Attorney in Portland.
UA is suing the fitness accessories company in MD District Court for infringing on its Armour marks.