Black Diamond Increased Revenue In The Three Quarter To Support Garment Line

Recently, the US outdoor company Black Diamond Inc announced its third quarter earnings. As of September 30th, the company's sales revenue increased by 24% to 54 million 900 thousand US dollars over the same period last year (US $44 million 200 thousand). The gross profit margin has improved significantly this year, increasing 290 basis points to 41.4%, compared with 35% a year ago.

Net income from continuing operations including non cash items adjusted from US $1 million 100 thousand to US $4 million in the same period last year, and increased by US $0.12 per diluted share.

In the past three quarters, the launch of the Black Diamond clothing product has become the main engine of growth.

At the investor conference on Monday, the company's top executives said they would increase their marketing efforts to support their retailers to increase sales.

Peter Metcalf, chief executive of Black Diamond, said that in addition to promoting the Black Diamond clothing product line in the main retail partners, it will also adopt two major market activities and a series of online promotion activities.

Improve brand image and awareness, and promote garment line sales.

In July 23rd, due to sluggish growth in recent years, Black Diamond awarded its backpack brand Gregory to Samsonite at a price of 84 million 100 thousand US dollars, only 2.3 times the 2014 sales of the brand.

In the view of Black Diamond, Gregory has become the lowest value brand of the company. The sale of Gregory has earned Black Diamond a pre tax income of $39 million 500 thousand.

The company wants to make use of 31 million 400 thousand

It is used to make up for a net operating loss of $31 million 400 thousand due to the sale of Gregory brand.

2014 Outlook: due to the sale of Gregory brand, Black Diamond has adjusted its 2014 annual forecast. It is estimated that the annual income will be between 1.92-1.97 billion dollars, 14-17 percentage points higher than the same period in 2013, and the gross margin will be raised by 130-180 basis points, which is expected to be between 38.5-39%.

The company expects revenue of 1.13-1.18 billion in the second half, up 15-20 percentage points over the same period last year.