Columbia reports record Q1 sales, beats estimates
Columbia Sportswear Company announced on Thursday its financial results for the first quarter of fiscal 2016. The company reported record numbers for the quarter in net sales, operating income and net income.
Net sales increased 10% to $525.1 million from $479.0 million, operating income increased to $44.3, or 8.4% of net sales, and net income increased 20% to $31.8 million, or $0.45 per diluted share.
US net sales grew 18% to $336.2 million, the Europe, Middle East and Africa (EMEA) region increased 7% to $51.3 million and Canada net sales increased 4%. The increases were partially offset by a 10% net sales decline to $101.8 million in the Latin America, Asia Pacific (LAAP) region, including declines of more than 30% in net sales in Korea.
The Global Columbia, Sorel, and Prana brands each increased in the quarter to $437.1 million, $18.1 million and $41.4 million, respectively, and Mountain Hardwear remained flat at $25.2 million.
Chief Executive Officer Tim Boyle commented, “Our diverse brand portfolio drove strong growth during the first quarter, including high-20 percent growth in our U.S. direct-to-consumer channels and low-teen percentage growth in our U.S. wholesale channel. We're also extremely encouraged by our continued progress in our Europe-direct markets, where the Columbia brand drove high 20 percent constant-currency growth. Our strong balance sheet gives us the financial flexibility to continue to make carefully-considered long-term strategic investments to position the company to drive profitability.”
Columbia currently expects mid-single-digit percentage 2016 net sales growth, fiscal year 2016 gross margins to improve by up to 30 basis points, operating income to range between $254 million and $263 million and net income after non-controlling interest to be between $184 million and $191 million.
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