Columbia Sportswear sales climb 8% in Q4 2017

12 Feb '18

3 min read

Courtesy: Columbia Sportswear Company

Columbia Sportswear Company has recorded net sales of $776.0 million for the fourth quarter ending December 31, 2017, an 8 per cent increase, compared with the net sales of $717.4 million for the fourth quarter of fiscal 2016. For full year 2017, the net sales were reported at $2.47 billion, increase by 4 per cent compared to full year 2016.

For the fourth quarter, the company recorded gross margin of 47.9 per cent, compared to 47.1 per cent in the prior year. The full year gross margin was 47.0 per cent, compared to 46.7 per cent in the prior year.

Operating income for the fourth quarter was $109.4 million, and non-GAAP operating income was $115.6 million, compared to $100.4 million in the prior year. Full year operating income was $263.0 million, and non-GAAP operating income was $277.8 million, compared with $256.5 million in the prior year.

"We are pleased to report better than expected fourth quarter results, including continued growth in Europe, North America, and with our distributor partners around the world. In 2017, we reported record net sales, gross margin, and operating income," president and chief executive officer Tim Boyle said.

Fourth quarter 2017 net loss was $7.1 million, or $0.10 loss per share, and non-GAAP net income was $92.5 million, or diluted earnings per share of $1.31, compared with fourth quarter 2016 net income of $84.7 million, or diluted earnings per share of $1.20. Full year 2017 net income was $105.1 million, or $1.49 per diluted share, and non-GAAP net income was $210.1 million, or $2.98 per diluted share, compared with full year 2016 net income of $191.9 million, or $2.72 per diluted share.

"We look forward to a year of continued revenue and earnings growth in 2018 as well as continued execution of our strategic priorities. Our 2018 outlook anticipates revenue growth of 5.5 per cent to 7.5 per cent, and non-GAAP revenue growth of 4 per cent to 6 per cent. We anticipate diluted earnings per share of $2.88 to $2.98, and non-GAAP diluted earnings per share of $3.17 to $3.27, driven by growth in the Columbia, SOREL, and prAna brands, and in all four of our geographic regions," Boyle concluded,

The company's annual net sales are weighted more heavily toward the Fall/Winter season, while operating expenses are more equally distributed throughout the year, resulting in a highly seasonal profitability pattern weighted toward the second half of the year. It expects 2018 net income between approximately $203 million and $211 million. The SG&A expenses are likely to increase at a rate faster than net sales. (RR)

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