Columbia Sportswear reports record third quarter sales

31 Oct '11

5 min read

• an expected net sales increase of 15 to 16 percent, which contemplates an 18 to 20 percent increase in the company's fourth quarter sales,
• growth in the company's global direct-to-consumer sales, which are expected to represent approximately 25 percent of full year 2011 sales,
• an approximate 100 basis point increase in gross margins compared to 2010 gross margins of 42.4 percent, and
• increased licensing income, partially offset by
• an estimated 25 to 35 basis point increase in selling, general and administrative (SG&A) expenses as a percentage of sales.

The company is currently planning for a full-year income tax rate of approximately 25 percent.

For the fourth quarter of 2011, the company expects an approximate 18 to 20 percent increase in net sales and operating margin expansion of approximately 130 to 150 basis points, consisting of an anticipated 85 basis point increase in gross margins, 15 to 35 basis points of SG&A expense leverage as a percentage of net sales, and increased licensing income, compared with fourth quarter 2010.

All projections related to anticipated future results are forward-looking in nature and are based on a variety of factors and assumptions, which may change, perhaps significantly.

Spring Wholesale Backlog
As of September 30, 2011, Spring wholesale backlog was $420.7 million, an increase of $26.5 million, or approximately 7 percent, compared with Spring wholesale backlog of $394.2 million at September 30, 2010, driven primarily by the Columbia brand. Changes in currency exchange rates provided a benefit of less than 1 percent to the year-over-year comparison.

Mr. Boyle commented, "Our Spring wholesale backlog represents less than one-fourth of annual sales. When combined with another strong product line-up for Fall 2012, our growing global direct-to-consumer business, and our commitment to manage our cost structure, we are well-positioned for another year of record sales and improved profitability in 2012."

Consolidated wholesale backlog, which includes both global Fall and Spring orders at September 30, 2011, was $742.4 million, an 11 percent increase compared with consolidated wholesale backlog of $667.4 million at September 30, 2010. Changes in currency exchange rates did not have a material effect on the year-over-year comparison.

Wholesale backlog is not necessarily indicative of changes in total sales for subsequent periods due to the mix of advance and "at once" orders, exchange rate fluctuations and order cancellations, which may vary significantly from quarter to quarter, and because the company's global direct-to-consumer operations are not included in wholesale backlog.

Share Repurchase Program
During the third quarter 2011, the company repurchased approximately 383,000 shares of common stock at an aggregate purchase price of $19.3 million. Approximately $59 million remainsunder the current repurchase authorization. The repurchase program does not obligate the company to acquire any specific number of shares or to acquire shares over any specified period of time.

Dividend
The board of directors approved a fourth quarter dividend of $0.22 per share, payable on December 1, 2011 to shareholders of record on November 17, 2011.

Columbia Sportswear Company

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