Columbia achieves record Q2 and 6 month sales, reports net loss
Columbia Sportswear achieved record second quarter net sales of $388.8 million, but the record sales were offset by a net loss of $8.2 million, or ($0.12) per share.
Net sales for the quarter grew 8% to $228.8 million in the US and 20% to $13.6 million in Canada. Sales declined 1% to $59.1 million in the EMEA region and 10% to $87.3 million in the LAAP region.
The Global Columbia brand performed well increasing 3% compared to the Sorel brand that decreased 19%.
Chief Executive Officer Tim Boyle commented, “Our successful first half results were highlighted by solid growth from three of our four major brands and improved gross margins in a challenging global environment. High-single-digit wholesale growth and low-20-percent direct-to-consumer growth in the U.S., combined with mid-20-percent constant-currency growth in Europe-direct markets and 20 percent constant-currency growth in Canada, demonstrate that we gained market share in each of these important geographies during the first half of 2016."
Columbia also achieved record first half net sales of $913.9 million, increasing 6% over the previous year’s comparable period. First half net income also increased 19% to $23.6 million, or $0.33 per diluted share.
In the second quarter, Columbia expanded its outdoor lifestyle range and signed a global eyewear license with Marchon, which manufactures, produces and distributes eyewear under license for Calvin Klein, Diane von Furstenberg, Dragon, Etro, Karl Lagerfeld, Marni, Nautica, Nike and Salvatore Ferragamo among others.
For the fiscal year, the company expects mid-single-digit percentage net sales growth and a high-single-digit percentage increase in net income to between $184 million and $191 million, or $2.60 to $2.70 per diluted share.
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