Inside the outdoor industry

Columbia results forecast full-year progress

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Columbia Sportswear Company has announced third quarter 2019 financial results for the period ended September 30, 2019 with net sale increasing, but full year growth expected to be flat.

For the full year 2019, the firm forecasts net sales of $3.01 to $3.04 billion (prior $3.00 to $3.04 billion), representing net sales growth of 7.5 to 8.5 per cent (prior 7.0 to 8.5 per cent). The outlook includes a foreign currency translation impact that is anticipated to reduce net sales growth by approximately 90 basis points.

Operating income is expected to be between $392 to $401 million (prior $388 to $396 million), representing operating margin of 13.0 to 13.2 per cent (prior 12.9 to 13 per cent).

Third Quarter 2019 figures showed net sales increasing 14 per cent (15 per cent constant-currency) compared to third quarter 2018, to a record $906.8 million.

“As we enter our peak selling season, I’m confident that our powerful brand portfolio, globally diversified business model and the dedication and focus of our talented global team position us to deliver another year of record sales and profit.”

Operating income increased 18 per cent to a record $152m  and operating margin expanded 60 basis points to 16.8 per cent of net sales, compared to third quarter 2018 operating income of $129.1 million, or 16.2 percent of net sales. Compared to non-GAAP third quarter 2018 operating income of $126.0 million, or 15.8 percent of net sales, operating income increased 21 percent and operating margin expanded 100 basis points.

President and CEO Tim Boyle, commented, “Record third quarter results exceeded our expectations, with broad based growth across our geographic segments, channels and product categories. During the quarter, we were able to ship a greater portion of our Fall 2019 order book compared to the Fall 2018 season as retailers restocked depleted inventory positions after harsh winter weather and exceptional sell-through in North America last year. Higher advance orders and earlier shipments contributed to 14 percent growth for the Columbia brand and 27 percent growth for the SOREL brand in the quarter. SOREL’s impressive growth was led by strong demand for fall fashion styles, further validating the brand’s success as a year-round fashion footwear brand. Our net sales growth momentum combined with Project CONNECT margin benefits drove earnings per share growth in excess of 20 percent with continued investment in our strategic priorities.”

“As we enter our peak selling season, I’m confident that our powerful brand portfolio, globally diversified business model and the dedication and focus of our talented global team position us to deliver another year of record sales and profit.”

“Our profitable growth trajectory and fortress balance sheet provide a foundation of strength and confidence from which we will continue investing in our strategic priorities to:

  • drive brand awareness and sales growth through increased, focused demand creation investments;
  • enhance consumer experience and digital capabilities in all our channels and geographies;
  • expand and improve global direct-to-consumer operations with supporting processes and systems; and
  • invest in our people and optimise our organisation across our portfolio of brands.”

“We are making these investments to build on our strengths as a brand-led, consumer-focused organisation and to enable sustainable long-term profitable growth.”

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