Compared to the second quarter of 2006, Columbia brand net sales increased 3 percent to $200.1 million, Mountain Hardwear net sales increased 6 percent to $11.5 million, Sorel net sales increased 28 percent to $3.2 million for the second quarter of 2007 and Montrail net sales decreased 8 percent to $3.5 million.
Tim Boyle, Columbia's president and chief executive officer, commented, “Our record second quarter results reflect our continued focus on operating margin improvement. Second quarter gross margins increased substantially due to various factors, including continued improvements in sportswear margins, a higher mix of full price sales and favorable currency exchange rates."
"Diligent expense management and one-time benefits to selling, general and administrative expenses also contributed to operating margin leverage, despite significant increases in depreciation and amortization related to installation of new equipment and systems in our Portland distribution center. Net sales increased to a second quarter record, but were lower than expectations due to higher than expected order cancellations in the U.S. attributable to a challenging retail environment and a shift in timing of international distributor shipments to the third quarter.”
“In reviewing the second quarter results, investors should be aware that the second quarter is our smallest revenue quarter of the year, as we conclude our spring product shipping season and begin shipping fall products late in the quarter. Because of the comparatively low revenue levels in the quarter, changes in shipments in any one channel, geography or category may be amplified,” continued Mr. Boyle.
The Company will host a conference call to elaborate on second quarter 2007 results on Thursday, July 26, 2007 at 5:00 p.m. Eastern. The call will include discussions regarding the Company's second quarter 2007 performance in general, the Company's geographic and merchandise category performance, and the Company's future opportunities.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
