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Columbia Sportswear sales dip in Q2
29
Jul '09
Columbia Sportswear Company, a global leader in the active outdoor apparel and footwear industries, net sales of $179.2 million for the quarter ended June 30, 2009, a decrease of 16 percent compared to net sales of $213.1 million for the same period of 2008, with 4 percentage points of that decline resulting from changes in foreign currency exchange rates.

Second quarter net loss totaled $9.9 million, or $(0.29) per diluted share, compared with a net loss of $1.8 million, or $(0.05) per diluted share, for the same period of 2008.

Tim Boyle, Columbia's president and chief executive officer, commented, “Our net loss for the second quarter, our smallest revenue quarter of the year, was slightly better than the outlook we gave in April, primarily due to a smaller decline in net sales than anticipated, combined with the positive effect of the cost control measures we've implemented over the past year. The global retail environment continued to provide significant headwinds which we expect to persist through at least the remainder of 2009 and into 2010. Despite those challenges, we remain focused on developing innovative apparel, footwear, accessories and equipment that excite and inspire outdoor enthusiasts by solving real problems, allowing them to enjoy the Greater Outdoors. Our strong balance sheet makes it possible for us to continue building on this foundation of innovations as we look forward to the prospect of an improving retail environment in 2010 and beyond.”

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 when compared with the prior year's comparable period due to the small base of comparison and because of shifts in the timing of shipments to international distributors which may occur late in the second quarter or early in the third quarter.

On a regional basis, the 16 percent decrease in second quarter 2009 net sales consisted primarily of the following variances:
- a 47 percent decline in the Europe, Middle-East & Africa region (EMEA) to $33.7 million, including a 5 percentage point negative effect from changes in foreign currency exchange rates compared with the second quarter of 2008. The remaining 42 percentage point decline reflected the previously-announced declines in Spring and Fall 2009 EMEA orders combined with a shift into the third quarter of Fall 2009 shipments to independent distributors, in comparison to 2008 when a greater relative portion of Fall 2008 orders were shipped in the second quarter.
- a 44 percent decline in Canada to $7.9 million, including a 10 percentage point negative effect from foreign currency exchange rates. The remaining 34 percentage point decline reflected the previously-announced decline in the Canadian region's Spring 2009 orders which included the effect of planned reductions in and exits from certain channels of distribution in favor of brand-enhancing channels, combined with increased order cancellations during the second quarter resulting from slow sell-throughs at stores operated by the company's wholesale customers and some shift in the timing of shipments into the third quarter.


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