Home / Knowledge / News / Apparel/Garments / Columbia Sportswear net sales increase 4% in Q4 FY19

Columbia Sportswear net sales increase 4% in Q4 FY19

07
Feb '20
Pic: Columbia Sportswear Company
Pic: Columbia Sportswear Company
Columbia Sportswear Company, a leading innovator in active outdoor apparel, footwear, accessories and equipment, reported growth in net sales by 4 per cent to a record $954.9 million in the fourth quarter (Q4) FY19 that ended on December 31, 2019. Net sales for the complete year jumped 9 per cent compared to 2018, to a record $3,042.5 million. 
 
Company sales surpassed the $3 billion mark reportedly for the first time in their history. Company reported that a challenging retail environment, particularly in outerwear, impacted sell-through performance in Q4. 
 
In Q4 FY19, operating income decreased 9 per cent to $138.6 million and operating margin declined to 14.5 per cent of net sales, compared to Q4 FY18 of $152.8 million or 16.6 per cent of net sales. SG&A expenses increased 6 per cent to $344.4 million, or 36.1 per cent of net sales, from $326.3 million, or 35.6 per cent of net sales, for the comparable period in 2018. Net income increased 1 per cent to $114 million from $113.3 million for the comparable period in 2018.
 
For the complete year, operating income increased 13 per cent to $395 million, or 13 per cent of net sales, from operating income of $351 million, or 12.5 per cent of net sales, in 2018. SG&A expenses increased 8 per cent to $1,136.2 million, or 37.3 per cent of net sales, from $1,051.2 million, or 37.5 per cent of net sales, in 2018. Net income increased 23 per cent to $330.5 million from $268.3 million in 2018.
 
Total net sales in US increased by 8 per cent to $634 million. Wholesale net sales increased high-single-digit per cent driven by growth in the Columbia and Sorel brands. Direct-to-consumer (DTC) net sales increased mid-single-digit per cent driven by new store openings as well as high-single-digit percent ecommerce growth. Both our brick & mortar and e-commerce businesses faced difficult comparisons, against exceptional sales performance in the prior year period. 
 
Latin America and Asia Pacific (LAAP) net sales reduced 4 per cent to $171.6 million. Japan net sales increased high-single-digit per cent. China net sales decreased mid-single-digit per cent. LAAP Distributor net sales decreased mid-teens per cent primarily driven by a shift in Fall 2019 shipments with a greater portion falling into Q3 FY19 compared to Fall 2018 shipments in the prior year. Korea net sales decreased low-double-digit per cent.
 
Europe, Middle East and Africa (EMEA) net sales for FY19 increased 7 per cent to $99.8 million. EMEA distributor net sales increased mid-teens per cent, driven by higher Spring 2020 advance orders and favorable timing of Spring 2020 shipments, with a greater portion falling into Q4 FY19 compared to Spring 2019 shipments in the prior year. 
 
Net sales in Canada decreased 10 per cent driven primarily by a shift in Fall 2019 shipments with a greater portion falling into third quarter 2019 compared to Fall 2018 shipments in the prior year, partially offset by DTC growth.
 
Company in their future outlook for FY20 stated that with respect to the coronavirus outbreak, company reported that they have closed stores in China, implemented strategies designed to mitigate the impact on their employees in China and put in place company-wide travel limitations. 
 
Company in their strategic priorities for sustainable and profitable growth are, to drive brand awareness and sales growth through increased, focused demand creation investments; enhance consumer experience and digital capabilities in all channels and geographies; expand and improve global DTC operations with support processes and systems; and invest in people and optimising organisation across company's portfolio of brands.

Fibre2Fashion News Desk (JL)


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 21st Feb 2020

France unveils environment score system for apparel

France has launched a system under which apparel may now display a...

Pic: Asia Pacific Rayon

Textiles | On 21st Feb 2020

APR’s new viscose rayon production facility inaugurated

The president of Indonesia, Joko Widodo, has inaugurated Indonesia's...

Pic: II.studio / Shutterstock.com

Fashion | On 21st Feb 2020

Re-commerce gaining momentum in India

The hazards of fashion industry are well-known, and to curb its...

Interviews View All

Abhishek Ganguly, Puma India

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Krishnanand Tripathi, Textrade International Ltd

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Headhonchos, Textiles & allied industry

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Teresa Neal,

Teresa Neal

Teresa Neal, an art professional with 25 years of experience, in...

Tina Antoniades,

Tina Antoniades

India-headquartered Lulu & Sky is a rapidly escalating brand with the...

Manoj Sorathiya,

Manoj Sorathiya

Surat-based Sunrise Imports & Exports Co is a manufacturer and...

Hemant Bheda, Arevo

Hemant Bheda
Arevo

Arevo, based in Silicon Valley in California, develops technology to...

Eamonn Tighe, Nature Works LLC

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Ian Russell, Pireta

Ian Russell
Pireta

UK-based Pireta has developed a unique free-form process to add durable,...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Pranav Mishra, Huemn

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


February 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search