Sales jump 8.8% in Q2 for footwear maker Columbia

29 Jul '05

4 min read

Excluding changes in currency exchange rates, Other International sales increased 41.2 percent, European sales decreased 0.8 percent, and Canadian sales decreased 28.3 percent for the second quarter of 2005. Consolidated net sales for the second quarter of 2005 increased 7.1 percent, excluding changes in currency exchange rates, compared to the same period of last year.

For the second quarter of 2005, sportswear sales increased 13.3 percent to $102.4 million, footwear sales increased 11.7 percent to $34.3 million, accessories sales increased 3.0 percent to $6.8 million, equipment sales increased 3.8 percent to $2.7 million, and outerwear sales decreased 2.0 percent to $40.0 million compared to the second quarter of 2004.

Tim Boyle, Columbia's president and chief executive officer, commented, "They have made significant long-term investments in distribution capacity, product design and sourcing infrastructure, and have increased advertising to strengthen their brands to support their long-term growth."

These are essential investments and are competitive advantages that position us to remain a primary vendor in a consolidating retail landscape. During the second quarter, they significantly improved inventory levels going into the peak fall shipping season by increasing their shipments of closeout merchandise.

These lower margin close-out sales, coupled with their long-term investments, are compressing operating margins in the near-term, but they believe these investments are essential to their long-term growth.

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