Easton-Bell Sports Inc – owner of the Giro and Bell bike helmet brands and Easton bike wheels, amongst other sporting brands – has reported Q2 2011 net sales of US$211.9 million. This represents an increase of 4.5% year on year, when compared to US$202.8 million of net sales for the second quarter of fiscal 2010.
Operating income was US$16.7 million for the second quarter of fiscal 2011, a decrease of US$2.1 million, or 11.2% compared to the second quarter of fiscal 2010 when normalized. The decline in operating income is associated with a 50 bps margin decrease, due to shifting product introductions into the second half of 2011 and the negative effect of inventory clearance sales.
“We are pleased to report our sixth consecutive quarter of sales growth despite shifting several key product introductions to the back half of this year,” said Paul Harrington, Easton-Bell President and Chief Executive Officer.
“In addition, throughout the quarter we replenished our inventory, allowing us to fund marketing investments behind our new products.”
Team Sports net sales increased US$10.3 million or 9.4% in the second quarter of fiscal 2011. Action Sports net sales decreased US$1.1 million or 1.2% in the quarter. The decrease was associated with lower traffic and sell-through of bicycle products in the mass channel. Although, this was partially offset by increases in cycling and powersports helmets in the specialty channel and the introduction of Giro cycling shoes.
