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Columbia Sportswear Company faces downward trend in IVQ and Full Year '08 Results

31 Jan '09
6 min read

Boyle concluded, “We will continue to invest in creating innovative products of superior value that protect consumers so they can enjoy their outdoor lifestyles year-round. Especially during economic times like these, we believe Columbia's heritage of providing superior performance at great value is a compelling position that will resonate with increasingly discerning consumers.”

Fourth Quarter Results
The 6 percent decrease in fourth quarter 2008 net sales consisted of a 3 percent decline in U.S. net sales to $205.0 million; a 21 percent decline in EMEA region net sales to $59.9 million, including a 3 percent negative effect from changes in foreign currency exchange rates compared with the fourth quarter of 2007; and a 12 percent decline in Canada net sales to $27.0 million, including a 14 percent negative effect from foreign currency. These declines were partially offset by 6 percent growth in LAAP region net sales to $63.0 million, including a 5 percent negative effect from foreign currencies.

Compared with the fourth quarter of 2007, fourth quarter 2008 outerwear net sales declined 6 percent to $171.7 million, sportswear net sales declined 8 percent to $106.8 million, footwear net sales declined 1 percent to $59.8 million, and accessories and equipment sales declined 6 percent to $16.6 million.

Compared with the fourth quarter of 2007, fourth quarter 2008 Columbia brand net sales decreased 7 percent to $305.6 million, partially offset by a 15 percent increase in Sorel brand net sales to $22.8 million and a 1 percent increase in Mountain Hardwear brand sales to $24.2 million. Combined, net sales of Montrail and Pacific Trail brand products did not comprise a significant percentage of sales in the fourth quarter of either year.

The company ended the quarter with $253.1 million in cash and short-term investments, compared with $273.5 million at December 31, 2007. Accounts receivable at December 31, 2008 were down slightly to $299.6 million, compared with $300.5 million at December 31, 2007. Inventories at December 31, 2008 decreased to $256.3 million, down $9.6 million, or 4 percent, compared with December 31, 2007 and down $45.1 million, or 15 percent, compared with September 30, 2008.

Fiscal 2008 Results
For 2008, net sales totaled $1.32 billion, a decrease of 3 percent from net sales of $1.36 billion for 2007, including a 1 percent benefit from changes in foreign currency exchange rates compared with 2007. Net income for 2008 totaled $95.0 million, or $2.74 per diluted share, compared to net income of $144.5 million, or $3.96 per diluted share, for 2007.

2008 U.S. net sales decreased 5 percent, to $727.7 million, compared with 2007; EMEA net sales decreased 7 percent, to $267.2 million, including a 5 percent benefit from changes in foreign currency exchange rates, compared with 2007; LAAP net sales increased 13 percent, to $198.2 million, including a neutral currency effect; and Canada net sales decreased 1 percent, to $124.7 million, including a 2 percent currency benefit.

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