Columbia Sportswear reveals record second quarter, increases 2019 outlook
Following a strong first quarter, Columbia Sportswear Company reported another record-breaking sales quarter on Thursday.
Net sales increased 9 percent, or 11 percent in constant currencies, to $526.2 million, up from $481.6 million for the comparable period in 2018.
By brand, Sorel sales climbed the most, jumping 32 percent to $15.1 million, while Columbia brand sales increased 10 percent to $454.9 million, led by its U.S. wholesale and direct-to-consumer performance.
Comparatively, PrAna brand net sales were up by a modest 2 percent to $38.7 million, while Mountain Hardwear brand net sales jumped 9 percent to $17.5 million.
Net sales in the U.S., by far Columbia’s biggest market, increased 13 percent. The company’s Latin America Asia Pacific (LAAP) net sales were steady, increasing by just 1 percent.
Likewise, the company’s Europe, Middle East and Africa (EMEA) region was up 8 percent in net sales, while Canada’s net sales equally climbed 12 percent.
Net income increased 137 percent to $23 million, or $0.34 per diluted share, from $9.7 million, or $0.14 per diluted share, for the comparable period in 2018.
For the first-half, net income increased 77 percent to $97.2 million, or $1.41 per diluted share, while net sales for the six months lifted 8 percent to $1.18 billion, said the Portland, Oregon-based company.
"2019 is shaping up to be another great year for Columbia Sportswear Company. Momentum across our diverse brand portfolio, distribution channels and regions along with Project Connect financial benefits fueled record second quarter and first half financial performance,” said president and CEO, Tim Boyle, in a news statement.
Looking ahead, the company increased its full-year outlook and is now predicting net sales of $3.00 to $3.04 billion, compared to previously forecasted results of $2.98 to $3.04 billion, representing a net sales growth of 7 to 8.5 percent.
Operating income is now expected to be of $388 to $396 million for the full-year and diluted earnings per share of $4.65 to $4.75.
The company will be focusing on enhancing its consumer experience and digital capabilities, as well as its global direct-to-consumer operations among other things this year.
"As we enter the second half of 2019, our brand, channel, geographic and supply chain diversification positions us for continued profitable growth despite global economic and trade uncertainty," continued Boyle.
"Our first half results, fall 2019 advance orders and current business momentum position us to deliver another record year of growth and profitability.
“Our profitable growth trajectory and fortress balance sheet, with cash and short-term investments of over $500 million and no long-term debt, provide a foundation of strength and confidence from which we will continue investing in our strategic priorities," Boyle concluded.
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