July 27, 2011 / 8:10 PM / 8 years ago

UPDATE 2-Jarden Q2 beats on demand for camping, sporting goods

* Q2 EPS $0.89 vs est $0.88

* Q2 rev $1.67 bln vs est $1.65 bln (Adds background, CEO comments in paragraphs 2-7)

By Arpita Mukherjee

July 27 (Reuters) - Diversified consumer products company Jarden Corp’s profit beat Wall Street expectations for the tenth straight quarter as strong demand for camping and sporting goods spurred sales growth.

Many consumers are seeking more active ways of recreation to stay healthy, and some hope outdoor activities will help them avoid more expensive ways of spending their leisure time, like going out clubbing or drinking.

All this is benefiting Jarden that sells a host of outdoor gear like camping tents, sleeping bags and baseball bats, under brands such as Coleman, K2, Rawlings and Aero.

Revenue from outdoor products, including camping and sports goods, rose 11 percent to $772.8 million.

“(The outdoor business) has done well, both because people are doing more camping ... or backyard socializing,” Jarden Chief Executive Jim Lillie told Reuters.

Lillie also said that the economic recovery is encouraging people to “return to higher priced products” like high end performance baseball bats priced at $400.

Jarden also plans to double the size of its outdoor clothing range, Marmot, over the next 3 years by opening their own stores and creating partnerships with retail outlets. It currently has three flagship stores in its Marmot apparel business.

The company, which gets its name from the Ball “jar” and products being used in the home (“den”), has traditionally been able to guard margins because of the diversity of its products — from playing cards and cooking pots to storage containers and ski gear.

Jarden, which sells its products through retailers like Wal-Mart Stores Inc , Target Corp and Bed Bath and Beyond , saw gross margins improve 30 basis points to 28.5 percent, from 28.2 percent last year.

The company, which owns brands such as Mr. Coffee and Crock-Pot, earned 89 cents a share, excluding items, edging past expectations of 88 cents a share, according to Thomson Reuters I/B/E/S.

Net sales rose 8 percent to $1.67 billion, beating market estimates of $1.65 billion.

Shares of Rye, New York-based Jarden closed at $33.14 on Wednesday on the New York Stock Exchange. (Reporting by Arpita Mukherjee in Bangalore; Editing by Don Sebastian, Viraj Nair)

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