Columbia's President optimistic about upcoming fall

23 Jul '10

5 min read

Columbia Sportswear Company, a leading innovator in active outdoor apparel, footwear, accessories and equipment, announced net sales of $221.8 million for the quarter ended June 30, 2010, an increase of 24 percent compared to net sales of $179.2 million for the same period of 2009, with 2 percentage points of that increase resulting from changes in foreign currency exchange rates.

Second quarter net loss totaled $10.6 million, or $(0.31) per diluted share, compared with a net loss of $9.9 million, or $(0.29) per diluted share, for the same period of 2009.

Tim Boyle, Columbia's President and Chief Executive Officer, commented, “Results for the second quarter, our smallest revenue quarter of the year, were better than our April outlook, primarily due to stronger reorders and fewer cancellations in our U.S. wholesale business and higher than expected sales from our retail stores, leading to double-digit growth in every product category.”

“While the consumer retail environment remains uncertain, we are optimistic about the upcoming Fall season, including the global launch of our innovative Omni-Heat warmth technologies. Omni-Heat's launch will be supported by the largest and most highly integrated marketing campaign in the company's history. In addition, our Sorel brand is poised to have a breakout year as more leading footwear retailers embrace the brand and more women realize they can get great fashion in a winter boot without sacrificing great performance.”

Second Quarter 2010 Results
The second quarter is the company's smallest revenue quarter, historically accounting for approximately only 15 percent of annual net sales. As a result, regional, category and brand net sales results often produce large percentage variances in relation to the prior year's comparable period due to the small base of comparison and shifts in the timing of shipments.

The 24 percent increase in second quarter 2010 sales compared with the second quarter of 2009 was driven by 27 percent growth in the U.S. to $123.7 million; 30 percent growth in the LAAP region to $51.8 million, including a 9 percentage point benefit from changes in foreign currency exchange rates; and 15 percent growth in the EMEA region to $38.6 million, including 1 percentage point negative effect from changes in exchange rates. These increases were partially offset by a 3 percent decline in Canada sales to $7.7 million, including a 13 percentage point benefit from changes in exchange rates.

Compared with the second quarter of 2009, second quarter 2010 sportswear sales increased 24 percent to $121.9 million, outerwear sales increased 24 percent to $43.4 million, accessories and equipment sales increased 45 percent to $17.8 million, and footwear sales increased 16 percent to $38.7 million.

Columbia brand sales totaled $199.4 million in the second quarter of 2010, a 23 percent increase compared with the second quarter of 2009. Mountain Hardwear brand sales increased 39 percent to $18.3 million. Sales of Sorel, Montrail and Pacific Trail brand products were insignificant during the second quarter of both years.

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