Black Diamond, Inc., a global supplier of active outdoor and action sports equipment and apparel, has shared preliminary results for Q4 2013 and the entire fiscal year, which ended Dec. 31, 2013.
Overall, Black Diamond expects to see record quarter growth, bringing in $60.4 million during Q4 2013, a 24% increase over the same period last year. For the fiscal year, the brand and retailer expect a 15% increase in annual sales, growing from $175.9 million in 2012 to $203.0 million in 2013.
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Gross margin for Q4 2013 is anticipated to reach approximately 38.0% compared to 36.3% in Q4 2012. Despite this improvement, several factors negatively impacted final gross margin results, including: Unfavorable production and shipping variances; discontinued merchandise; and inventory adjustments associated with older, discontinued winter seasonal product.
“2013 was a year of significant strategic accomplishments, including the launch of Black Diamond apparel, the establishment of our own distribution business in Japan, as well as the integration of POC and PIEPS (brands),” said Peter Metcalf, President and CEO of Black Diamond. “Our 24% sales growth in the fourth quarter was broad-based, as we experienced healthy double-digit growth across all of our brands, categories and major geographies. We attribute this growth to our ability to introduce innovative new products, with these efforts resulting in market share gains in the highly competitive active outdoor industry.”
Positive 2013 results, as well as aggressive product release plans, allude to a promising 2014 for Black Diamond. The retailer expects that sales for 2014 will range between $235 million and $240 million, an increase of approximately 18% over 2013. The company also expects gross margin for the 2014 fiscal year to range between 39.5% and 40.5%.
