Columbia reports record fourth quarter and fiscal year, expects 4% growth in 2017
Columbia Sportswear on Thursday posted record fourth quarter and fiscal year numbers. Fourth quarter net sales increased 3% to a record $717.4 million, and net income increased 34% to a record $84.7 million, or $1.20 per diluted share. Operating income also increased 22% to $100.4 million, or 14.0% of net sales.
Chief Executive Officer Tim Boyle commented, "We are very proud of our fourth quarter and full year 2016 performance against a challenging backdrop in many of our largest markets. Record net sales, record gross margins, record operating income, expanded operating margin, and record net income reflect our powerful brand portfolio, robust operational platforms and disciplined prioritization of investments.”
The record fourth quarter sales were driven by US net sales of $455.4 million, a 20% increase in EMEA region net sales to $70.1 million, and a 1% increase in net sales in the LAAP region to $151.9 million. The sales were also offset by a 12% sales decrease in Canada.
Global Columbia brand net sales increased 4% to $552.3 million and global Prana brand net sales increased 2% to $28.2 million, while the Sorel brand decreased 1% to $103.8 million and the Mountain Hardwear brand decreased 11% to $31.3 million.
Full year net sales increased 2% to a record $2.38 billion, led by a 3% increase in US net sales and a 9% increase in EMEA region net sales, and net income increased 10% to $191.9 million, or $2.72 per diluted share.
Boyle added, “We are particularly encouraged by the strong results we achieved in our Europe-direct markets, completing a second consecutive year of mid-20 percent constant-currency sales growth and returning that business to profitability after several challenging years. We also grew in the U.S., despite significant headwinds from customer bankruptcies, changing consumer shopping behavior, unseasonably warm weather, and cautious wholesale customers."
For fiscal 2017, Columbia expects net sales growth of 4%, and for net income to range between $192 million and $200 million, or $2.72 to $2.82 per diluted share.
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