Report: Merchandiser's sales, profits down
Friday, Aug. 07, 2009
While sales are down sharply so far this season for merchandise giant Motorsports Authentics, it apparently isn’t all Dale Earnhardt Jr.’s fault.
The merchandising company fared very well in 2008 – with sales of $117.698 million and a profit of $9.548 million - as demand for Earnhardt goods soared with his move to Hendrick Motorsports. NASCAR’s most popular driver has struggled this season, but there are many reasons for MA’s declines in the first half of 2009, SceneDaily.com reports.
The merchandiser’s sales were off 39.5 percent for the first six months of its 2009 fiscal year, to $71.172 million, according to a filing with the U.S. Securities and Exchange Commission.
The company lost $6.666 million in the December-May period, after a profit of $9.548 million for that stretch in 2008. Its parent companies, Speedway Motorsports and International Speedway Corp., had projected that Motorsports Authentics would break even in 2009, the SceneDaily.com report said.
Besides the Earnhardt factor – and no comparable blockbuster driver moves this season - it was noted in the SEC filing that “results for 2009 were negatively impacted by decreased attendance at motorsports racing events and ongoing recessionary conditions” and increased competition for NASCAR-related products.
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