Columbia Sportswear sets preliminary 2011 outlook
Columbia Sportswear Company, a leading innovator in the global outdoor apparel, footwear, accessories and equipment industries, announced record fourth quarter net sales of $457.3 million for the quarter ended December 31, 2010, a 28 percent increase compared with net sales of $358.3 million for the same period of 2009, with changes in foreign currency exchange rates contributing less than 1 percent of that growth.
Fourth quarter net income increased 13 percent to $26.2 million, or $0.77 per diluted share, compared with net income of $23.1 million, or $0.68 per diluted share, for the same period of 2009.
Tim Boyle, Columbia's president and chief executive officer, commented, “We finished 2010 with strong momentum in the marketplace as consumers responded favorably to our innovations, driving solid sell-through at our wholesale customers and stronger-than-expected growth in direct-to-consumer sales. Columbia brand net sales grew 22 percent in the fourth quarter and 18 percent for the full year, fueled by the launch of Omni-Heat.
“Omni-Heat products have sold briskly in all key markets, supported by our largest, most comprehensive and most integrated marketing campaign ever. Mountain Hardwear net sales grew 38 percent in the fourth quarter and 21 percent in 2010, reflecting double-digit growth in every region and product category. Net sales of the Sorel brand, repositioned as a premium footwear brand that delivers rugged performance for men and fashion-forward styling for women, grew 74 percent in the fourth quarter and 48 percent for the year.”
Boyle continued, “In 2011, we intend to build on our momentum with a strong lineup of innovative products across our portfolio of brands. At the same time, we plan to invest in information technology and business process changes necessary to improve our operational capabilities and support long term growth. With input costs increasing faster than at any time in recent memory, we are focused on managing operating costs in order to achieve our objective of improved operating margins.”
Fourth Quarter Results
Net sales increased $99.0 million, or 28 percent, fueled by a $66.4 million, or 22 percent increase in Columbia brand net sales to $365.0 million; a $21.5 million, or 74 percent increase in Sorel brand net sales to $50.5 million; and a $10.9 million, or 38 percent increase in Mountain Hardwear brand net sales to $39.8 million.
Net sales of Outerwear increased $34.4 million, or 20 percent, to $205.9 million; Footwear net sales increased $31.7 million, or 45 percent, to $102.6 million; Sportswear net sales increased $26.3 million, or 28 percent, to $119.3 million; and Accessories & Equipment net sales increased $6.6 million, or 29 percent, to $29.5 million.
Net sales in the U.S. increased $43.0 million, or 20 percent, to $258.5 million; EMEA region net sales grew $24.4 million, or 53 percent, to $70.6 million, including a 9 percentage point negative effect from changes in currency exchanges rates; LAAP region net sales increased $23.6 million, or 32 percent, to $96.5 million, including a 5 percentage point benefit from changes in currency exchange rates; and net sales in Canada increased $8.0 million, or 34 percent, to $31.7 million, including a 6 percentage point benefit from changes in currency exchange rates.