Columbia Sportswear revenues boosted by Sorel sales jump
today Oct 31, 2019
American active and footwear group Columbia Sportswear Company announced solid revenue and earnings gains for the third quarter on Wednesday, as its Sorel brand saw accelerated growth thanks to strong demand for its fall fashion styles.
The Portland, Oregon-based company’s net sales increased 14% (15% in constant currencies) to $906.8 million in the third quarter ended September 30, 2019, up from $795.8 million in the prior-year period.
At Sorel, sales shot up 27% to $116.1 million, while the company’s namesake Columbia brand also posted a more than respectable 14% increase in sales, which totaled $729.5 million. The news was less positive at the prAna and Mountain Hardwear brands, where sales fell 4% to $38.5 million, and 1% to $22.7 million, respectively.
Geographically, the company’s growth was spread across the regions in which it has operations, but Canada and the U.S. made the most significant progress during the quarter. In Canada, sales rose 21% to $97.9 million, while in the U.S. – Columbia’s largest market – revenues totaled $581.3 million, up 17% compared to the same period in the previous year.
The group’s quarterly net income increased 19% to $119.3 million, or $1.75 per diluted share, compared to the $100.2 million, or $1.42 per diluted share, reported by the company in Q3 2018.
The quarter was a fitting conclusion to the first nine months of 2019 for Columbia, whose net sales rose 11% (12% in constant currencies) to $2.1 billion during the period, compared to $1.9 billion in the same period in the previous year.
Year to date, the company’s net income jumped 40%, totaling $216.5 million, or $3.15 per diluted share, up from $155.0 million, or $2.19 per diluted share.
“Record third quarter results exceeded our expectations, with broad based growth across our geographic segments, channels and product categories,” said Columbia Sportswear President and CEO Tim Boyle in a release. “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.”
Looking forward, Columbia has revised up its full-year guidance and currently expects to see annual net sales in the range of $3.01 billion to $3.04 billion, representing growth of between 7.5% and 8.5%. Diluted earnings per share are forecast to be between $4.70 and $4.80.
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