12 percent increase in Columbia Sportswear Spring backlog
Columbia Sportswear Company, a leading innovator in the global outdoor apparel, footwear, accessories and equipment industries, announced record net sales of $504.0 million for the quarter ended September 30, 2010, a 16 percent increase compared with net sales of $434.5 million for the same period of 2009. Changes in foreign currency exchange rates did not have a material effect on the year-over-year comparison.
• Third quarter 2010 consolidated net sales increased 16 percent to a record $504.0 million, compared to third quarter 2009 net sales of $434.5 million.
• Third quarter 2010 net income increased 11 percent to $52.2 million, or $1.53 per diluted share, including a benefit of $0.10 per share from a lower income tax rate.
• The company revised its full year 2010 outlook for net sales to increase 17 to 18 percent and for operating margin to be approximately 6.2 to 6.6 percent of sales.
• Global spring wholesale backlog at September 30, 2010 totaled $394.2 million, an increase of approximately 12 percent compared with backlog of $350.8 million at September 30, 2009; consolidated wholesale backlog, which also includes fall orders, was 13 percent higher at $667.4 million.
• The board of directors increased the quarterly dividend by $0.02 per share, or 11 percent, to $0.20 per share, payable on November 24, 2010 to shareholders of record on November 10, 2010.
Third quarter net income increased 11 percent to $52.2 million, or $1.53 per diluted share, including a benefit of $0.10 per share from a lower income tax rate as a result of the recognition of tax benefits associated with statute of limitations expirations during the third quarter. The company reported net income of $46.9 million, or $1.38 per diluted share, for the same period of 2009.
Tim Boyle, Columbia's president and chief executive officer, commented, "We achieved quarterly sales of over $500 million for the first time in the company's 72-year history, highlighted by the global launch of our innovative Omni-Heat warmth technologies. During the quarter we also added another technology to our expanding platform of innovations with the acquisition of OutDry Technologies, which we plan to introduce across our brand portfolio in Fall 2011."
Boyle continued, "The increase in 2010 net sales and much of the pressure on 2010 operating margins are the result of investments we have chosen to make to claim market share; to shift our business toward more innovative and premium products; to drive consumer demand for all of our major brands, particularly the Columbia brand; and to improve business systems and processes.
"We believe we are achieving many of our goals in the marketplace, and have therefore begun to invest more heavily in our infrastructure and systems. To successfully secure market share and retail floor space for our Fall 2010 innovations, we chose to expedite manufacturing and shipping in a capacity-constrained environment, which has had a particularly pronounced impact on our 2010 profitability."