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Columbia Sportswear reports Q2 net income of 9.7 million dollars

By Prachi Singh

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Business |INTERACTIVE

Columbia Sportswear Company has reported net sales of 481.6 million dollars for the quarter ended June 30, 2018, an increase of 21 percent or 19 percent constant-currency. The company’s non-GAAP net sales of 474.1 million dollars increased 19 percent or 17 percent constant-currency. Second quarter net income, the company said, increased to 9.7 million dollars or 0.14 dollar per diluted share, compared with net loss of 11.5 million dollars, or 0.17 dollar per share. Non-GAAP net income increased to 11.3 million dollars or 0.16 dollar per diluted share, compared with net loss of 9 million dollars, or 0.13 dollar per share.

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Commenting on the company’s results, Columbia Sportswear’s President and CEO Tim Boyle said in a statement: "Our first half revenue surpassed the one billion dollar mark for the first time in company history led by growth in the Columbia brand driven by solid performance in the United States across all channels as well as strong growth internationally led by our Europe-direct business. We are also pleased with strong first half performance for both Prana and Sorel. With the strength in the first half performance we are pleased to increase our full year 2018 financial outlook."

Columbia Sportswear’s H1 net sales grow 16 percent

Through the first six months, net sales grew 146.2 million dollars or 16 percent or 13 percent constant-currency to 1,088.9 million dollars. First half net income increased 124 percent to 54.8 million dollars or 0.77 dollar per diluted share. Non-GAAP net sales grew 130.5 million dollars or 14 percent or 11 percent constant-currency to 1,073.2 million dollars, while non-GAAP net income increased 136 percent to 65.8 million dollars or 0.93 dollar per diluted share.

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US net sales in the second quarter increased 18 percent, which the company said, are attributable to mid-teens percent growth in direct-to-consumer and high-teens percent growth in wholesale. The company operated 134 US retail stores at June 30, 2018 compared with 122 at the same time last year. Latin America Asia Pacific (LAAP) net sales increased 27 percent or 22 percent constant-currency, while non-GAAP net sales increased 17 percent or 13 percent constant-currency driven by growth from LAAP distributors, China and Japan, partially offset by a decline in Korea.

Europe Middle East and Africa (EMEA) net sales increased 26 percent or 21 percent constant-currency driven by high-20 percent growth in EMEA distributors and low-20 percent growth in Europe-direct (high-single-digit percent constant-currency). The company added that Canada net sales increased 12 percent or 7 percent constant-currency, driven by DTC.

Columbia Sportswear’s results across brands and retail

Columbia brand net sales increased 22 percent or 20 percent constant-currency to 414.8 million dollars. Sorel brand net sales increased 90 percent (85 percent constant-currency) to 11.4 million dollars, while Prana brand net sales increased 9 percent to 38.1 million dollars. Mountain Hardwear brand net sales decreased 1 percent to 16 million dollars.

Apparel, accessories and equipment net sales increased 20 percent or 18 percent constant-currency to 394.6 million dollars. Footwear net sales increased 26 percent or 22 percent constant-currency to 87 million dollars.

Wholesale net sales increased 23 percent or 22 percent constant-currency to 261.2 million dollars, while DTC net sales increased 18 percent or 16 percent constant-currency to 220.4 million dollars.

Columbia Sportswear expects FY18 net sales to grow by 9 to 10.5 percent

The company currently expects 2018 net sales growth of approximately 9 to 10.5 percent compared to prior outlook of 8 to 10 percent), compared with 2017 net sales of 2.47 billion dollars. The company expects non-GAAP net sales growth of approximately 7.5 to 9.0 percent against prior outlook of 6.5 to 8.5 percent, which excludes approximately 40 million dollars in net sales associated with the new revenue accounting standard.

The company expects full year 2018 gross margin to improve by up to 140 basis points and non-GAAP gross margin to improve by up to 60 basis points. The company expects 2018 net income between approximately 223 million dollars and 230 million dollars compared to prior outlook between 213 million dollars and 220 million dollars, and non-GAAP net income between approximately 239 million dollars and 246 million dollars compared to prior outlook of between 231 million dollars and 238 million dollars, or diluted earnings per share between approximately 3.15 dollars and 3.25 dollars against prior guidance of between 3.01 dollars and 3.11 dollars, and non-GAAP diluted earnings per share between 3.37 dollars and 3.47 dollars compared to prior outlook of between 3.27 dollars and 3.37 dollars.

Picture:Columbia website

Columbia Sportswear
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