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Columbia Sportswear sales down 4% in Q3
25
Oct '13
Columbia Sportswear Company, a leading innovator in the active outdoor apparel and footwear industries, announced net sales of $523.1 million for the quarter ended September 30, 2013, a 4 percent decrease compared with net sales of $545.0 million for the same period in 2012, including a 1 percentage point negative effect from changes in currency exchange rates.

Third Quarter 2013 Highlights:

-Consolidated net sales decreased 4 percent to $523.1 million, compared with third quarter 2012 net sales of $545.0 million.
-Operating income totaled $76.9 million, or 14.7 percent of sales, compared with third quarter 2012 operating income of $87.8 million, or 16.1 percent of sales.
-Net income attributable to Columbia Sportswear Company totaled $54.6 million, or $1.57 per diluted share, compared with third quarter 2012 net income of $64.4 million, or $1.88 per diluted share. A higher effective tax rate accounted for $2.2 million, or $0.06 per diluted share, of the decline.
-The board of directors approved a 14 percent increase in the quarterly dividend to $0.25 per share, payable on December 2, 2013 to shareholders of record on November 14, 2013.

Full Year 2013 Outlook Revised Upward:

-Consolidated net sales now expected to decline up to 1.5 percent.

-Operating margin is expected to be approximately 7.25 percent, including restructuring charges incurred through September 30 and the effects of pre-operating costs and deferral of operating income related to the previously announced plan to transition to a joint venture in China on January 1, 2014. Operating margin is expected to be approximately 8.1 percent, excluding the effects of those items.

Third quarter net income totaled $54.6 million, or $1.57 per diluted share, compared with net income of $64.4 million, or $1.88 per diluted share, for the same period in 2012. A higher effective tax rate in the current quarter accounted for $2.2 million, or $0.06 per diluted share, of the decline.

Tim Boyle, Columbia's president and chief executive officer, commented, "Our third quarter results benefited from strong performance across our direct-to-consumer platform while we continue to focus on reinvigorating growth in our wholesale channels globally. A 14 percent decline in inventory levels and our continued focus on managing discretionary spending also contributed to better-than-expected profitability and cash flow during the quarter, leading us to raise our financial outlook for 2013."

"These trends are encouraging and we're very focused on several initiatives to return to growth in 2014, beginning with improved seasonal product assortments. We also expect to generate growth through our new joint venture in China, grow and expand our direct-to-consumer operations, generate growth in our North American and European wholesale businesses, and grow in key international markets served by independent distributors. We also expect to implement our new global ERP platform in the U.S. in order to improve our business processes and financial performance. With the above factors in mind, the board of directors approved a 14 percent increase in the company's quarterly dividend, bringing it to $0.25 per share from the prior $0.22 per share rate."

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Columbia Sportswear


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