Net sales reached record figures and expanded 14 per cent year over year for the third quarter ended September 30, 2015 at Columbia Sportswear Company.
Net sales climbed to $767.6 million for the third quarter of 2015 an increase of 14 per cent and 18 per cent in constant-currency compared with net sales of $675.3 million for the same period in 2014.
This growth included double-digit net sales increases from each of the company's brands, 25 per cent growth in North America and high-teen constant-currency percentage growth in Europe-direct markets.
The Columbia brand also continued to demonstrate its resurgence in Europe-direct markets, posting mid-twenty-percent constant-currency growth in that important region during the quarter.
“Net sales through the first nine months of 2015 also surged 14 per cent and 19 per cent on a constant-currency basis also to a record $1,626.8 million,” the company said in a press release.
Third quarter of 2015 operating income soared 35 per cent year on year to a record $132.3 million or 17.2 percent of net sales.
Columbia Sportswear further added that its net income for the reporting quarter drove up 39 per cent from a year ago quarter to a record $91.1 million or $1.28 per diluted share.
Operating income through the first nine months of 2015 increased 43 per cent to $167.4 million, as against operating income of $116.7 million for the same period last year.
Net income for the nine months ended September 30, 2015 including incremental profit from the Prana brand, rose 36 per cent over the same period in 2014 to a record $111.0 million or $1.56 per diluted share.
“Our expanded gross margins are enabling us to increase our demand creation investments by 13 per cent this year, while driving significantly improved operating margins,” Columbia Sportswear stated.
CEO Tim Boyle said, "During the third quarter, the Columbia, Sorel and Prana brands combined to generate 26 per cent net sales growth across North America.”
“Better supply chain execution resulted in more timely delivery of wholesale customers' Fall advance orders, which has enabled them to benefit from increased sell-through volumes thus far in the season,” he added.
On October 9, the company launched the largest integrated global marketing campaign titled 'Tested Tough' in the Columbia brand's history.
The brand platform is a global initiative designed to strengthen emotional connections with consumers and drive sell-through in key markets.
“Our record results illustrate the increasing earnings power of our brand portfolio and we are only beginning to unlock the long-term potential of our portfolio of brands," Boyle concluded. (AR)
Fibre2Fashion News Desk – India