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Columbia Sportswear sales dip in Q2
29 Jul '09
5 min read
The above net sales declines in EMEA and Canada were partially offset by:
- a 2 percent increase in U.S. net sales. Sales through the company's expanded base of U.S. branded and outlet stores increased significantly, reflecting the addition of 12 outlet stores and four branded stores since June 30, 2008. This increase was partially offset by a high single-digit decline in U.S. wholesale net sales, as previously forecasted, which reflected increased order cancellations for Spring 2009 product, including the bankruptcy and subsequent liquidation or reduction of operations at several wholesale customers.
- Net sales in the Latin America & Asia Pacific region (LAAP) were essentially equal to net sales in the second quarter of 2008, including a 7 percentage point negative effect from foreign currency exchange rates.
By product category, the decrease in second quarter 2009 net sales compared with the second quarter of 2008 consisted primarily of the following variances:
- Sportswear net sales decreased 15 percent to $98.4 million, with the decline concentrated primarily in the EMEA region, U.S. wholesale and Canada.
- Footwear net sales decreased 21 percent to $33.4 million, with the decline concentrated in the EMEA region due to the previously mentioned reduced volume and shift in timing of shipments of Fall 2009 orders to EMEA distributors compared to the same period last year.
- Second quarter outerwear net sales declined 16 percent to $35.1 million, again primarily reflecting reduced volume and a relative shift in timing of EMEA distributor shipments.
- Accessories and equipment net sales declined 8 percent to $12.3 million.
By brand, the decrease in second quarter 2009 net sales compared with the second quarter of 2008 consisted primarily of the following variances:
- Columbia brand net sales, which accounted for approximately 90 percent of consolidated second quarter net sales, declined 17 percent to $162.0 million. Most of this decline was concentrated in the EMEA region due to the previously-mentioned reduced volume and shift in timing of distributor shipments. In addition, a large decline in Columbia brand net sales in Canada reflected planned reductions and exits from certain distribution channels.
- Combined, Mountain Hardwear, Sorel and Montrail brand net sales declined $1.8 million, or 9 percent, to $17.2 million.
The company ended the second quarter with approximately $318 million in cash and short-term investments, compared with approximately $327 million at June 30, 2008.
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- a 2 percent increase in U.S. net sales. Sales through the company's expanded base of U.S. branded and outlet stores increased significantly, reflecting the addition of 12 outlet stores and four branded stores since June 30, 2008. This increase was partially offset by a high single-digit decline in U.S. wholesale net sales, as previously forecasted, which reflected increased order cancellations for Spring 2009 product, including the bankruptcy and subsequent liquidation or reduction of operations at several wholesale customers.
- Net sales in the Latin America & Asia Pacific region (LAAP) were essentially equal to net sales in the second quarter of 2008, including a 7 percentage point negative effect from foreign currency exchange rates.
By product category, the decrease in second quarter 2009 net sales compared with the second quarter of 2008 consisted primarily of the following variances:
- Sportswear net sales decreased 15 percent to $98.4 million, with the decline concentrated primarily in the EMEA region, U.S. wholesale and Canada.
- Footwear net sales decreased 21 percent to $33.4 million, with the decline concentrated in the EMEA region due to the previously mentioned reduced volume and shift in timing of shipments of Fall 2009 orders to EMEA distributors compared to the same period last year.
- Second quarter outerwear net sales declined 16 percent to $35.1 million, again primarily reflecting reduced volume and a relative shift in timing of EMEA distributor shipments.
- Accessories and equipment net sales declined 8 percent to $12.3 million.
By brand, the decrease in second quarter 2009 net sales compared with the second quarter of 2008 consisted primarily of the following variances:
- Columbia brand net sales, which accounted for approximately 90 percent of consolidated second quarter net sales, declined 17 percent to $162.0 million. Most of this decline was concentrated in the EMEA region due to the previously-mentioned reduced volume and shift in timing of distributor shipments. In addition, a large decline in Columbia brand net sales in Canada reflected planned reductions and exits from certain distribution channels.
- Combined, Mountain Hardwear, Sorel and Montrail brand net sales declined $1.8 million, or 9 percent, to $17.2 million.
The company ended the second quarter with approximately $318 million in cash and short-term investments, compared with approximately $327 million at June 30, 2008.
Click here for more details.
Columbia Sportswear Company
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