- Prachi Singh |
Columbia Sportswear Company announced through a statement that fourth quarter net sales increased 4 percent to 954.9 million dollars against the comparable period in 2018. Gross margin declined 160 basis points to 50.1 percent of net sales from 51.7 percent of net sales for the comparable period in 2018. Net income increased 1 percent to 114 million dollars or 1.67 dollars per diluted share, while net income decreased 2 percent from non-GAAP net income of 116.9 million dollars or 1.68 dollars per diluted share for the comparable period in 2018.
Commenting on the company’s performance, Chairman, President and Chief Executive Officer Tim Boyle said: “2019 was a record year for Columbia Sportswear Company, with sales surpassing the 3 billion dollars mark for the first time in our company’s history. In the fourth quarter, a challenging retail environment, particularly in outerwear, impacted sell-through performance and led to higher levels of promotional activity. In this environment, we delivered results generally in-line with our guidance, including continued exceptional growth for the Sorel brand.”
Columbia Sportswear’s full year sales increase 9 percent
Net sales increased 9 percent or 10 percent constant-currency to 3,042.5 million dollars. Gross margin expanded 30 basis points to 49.8 percent of net sales, from 49.5 percent of net sales in 2018. The company added that net income increased 23 percent to 330.5 million dollars or 4.83 dollars per diluted share, from 268.3 million or 3.81 dollars per diluted share, in 2018. Net income increased 17 percent from non-GAAP net income of 282 million dollars or 4.01 dollars per diluted share in 2018.
At its board meeting on February 3, 2020, the board of directors at Columbia Sportswear authorized an 8 percent increase to the company’s regular quarterly cash dividend to 26 cents per share, payable on March 23, 2020 to shareholders of record on March 10, 2020.
Columbia Sportswear reveals full year 2020 outlook
The projections in the company’s 2020 financial outlook, Columbia Sportswear said, are predicated on certain assumptions including normal seasonal weather globally and that current macroeconomic, geopolitical and market conditions in key markets do not worsen. Projections do not include the potential financial impact of the coronavirus outbreak, the effect of which is unable to be predicted with any degree of certainty at this time.
The company expects net sales in the range of 3.18 to 3.23 billion dollars, an increase of 4.5 percent to 6 percent, gross margin to expand by 30 bps to 50.1 percent and net income to range between 325 to 335 million dollars with diluted earnings per share in the range of 4.75 to 4.90 dollars.