Columbia Sportswear posts 4% sales dip in Q3 of 2012

Columbia and Sorel brand net sales declined $11.0 million, or 2 percent, and $10.8 million, or 15 percent, respectively, accounting for the entire net sales decline in the quarter.

Balance Sheet

The company ended the third quarter with $96.3 million in cash and short-term investments, compared with $90.4 million at September 30, 2011.

Consolidated inventories totaled $475.7 million at September 30, 2012, approximately 10 percent higher than at the same time last year. Higher average unit costs accounted for all of the increase in inventory valuation, on a mid-single-digit percentage decline in units.

Raised 2012 Earnings Outlook

The company currently expects full year 2012 net sales of approximately $1.7 billion, a 25 to 35 basis point decrease in gross margin, and 40 to 50 basis points of SG&A expense leverage (including first quarter restructuring charges of approximately $4.0 million), resulting in operating margin of approximately 8.3 percent compared with 8.1 percent operating margins in fiscal 2011.

For the fourth quarter of 2012, the company expects net sales to increase up to 1.5 percent from net sales of $526.1 million in the fourth quarter of 2011, a 50 to 75 basis point decrease in gross margin, and 150 to 200 basis points of SG&A expense leverage, resulting in estimated operating margin expansion of approximately 100 to 150 basis points.

All projections related to anticipated future results are forward-looking in nature and are subject to risks and uncertainties which may cause actual results to differ, perhaps significantly.

Columbia Sportswear Company is a leading innovator in the global outdoor apparel, footwear, accessories and equipment industry. Founded in 1938 in Portland, Oregon, Columbia products are sold in approximately 100 countries and have earned an international reputation for innovation, quality and performance.

Columbia Sportswear Company