WESTPORT, CT (BRAIN) — Compass Diversified Holdings, parent of Camelbak and Fox, reported strong growth in sales of both brands during 2012.
"At Fox we posted another strong quarter as business continues to perform at a high level across all markets," said Compass CEO Alan Offenberg in a fourth-quarter and year-end earnings call Thursday morning. "Revenue grew by 20 percent at Fox. Camelbak revenue grew by 34 percent."
Net sales of Camelbak products reached $157 million last year, a big jump from $42 million in 2011. Compass acquired the brand in August of 2011, so 2012 was the first full year of sales under Compass ownership. Camelbak made up 17 percent of Compass' total net sales last year.
Hydration packs accounted for half of Camelbak's gross sales; bottles represented 34 percent, gloves for military and government contracts accounted for 6 percent and the remaining 10 percent of sales were accessories.
Offenberg noted that there was some concern that decreased spending in the U.S. military and defense may impact Camelbak's sales, as the brand is a major supplier of packs and gloves for military applications. Camelbak supplied a new hydration system to the U.S. Marine Corps to use in training and combat last year and the contract will be fulfilled by the first quarter of 2013.
Meanwhile, full-year net sales at Fox reached $235 million, up from $197 million in 2011. Operating income was also up, totaling $26 million last year, a $4 million gain over 2011's $22 million.
About 81 percent of sales in 2012 were to OEMs, the company stated in a year-end report. And mountain bike products made up about 67 percent of Fox's gross sales last year; powered motor vehicles made up the remainder.
Fox accounted for 26 percent of Compass' net sales last year, down from 32 percent in 2011.
The suspension brand continues to see strong growth internationally. Compass reported that sales to international customers reached $149 million last year up from $129 million in 2011. However, it points out that many of these sales are to assemblers who then ship product to the U.S., so it's not necessarily reflective of the end user of its products.
Management did say, however, that the company continues to investigate potential growth markets like Asia and South America. Fox established a manufacturing operation in Taiwan in 2012 and company officials say they intend to "capitalize on new opportunities in Taiwan as many of its customers are in Asia."
Executives said that sell-through of Fox's 2013 bike product was strong and inventories looked good at the end of the year with no excess as 2012 inventory sold out.
