Columbia Sportswear reports strong Q2, beats estimates
Portland, Oregon-based outdoor and sportswear group Columbia Sportswear Company reported on Thursday second quarter results that beat analysts’ expectations and lead to record sales.
Company net sales increased 21 percent (19 percent constant-currency) to a record $481.6 million, in the second quarter ended June 30.
The jump was driven by both wholesale net sales, which increased 23 percent (22 percent constant-currency) to $261.2 million, as well as direct to consumer net sales, which were equally up by 18 percent (16 percent constant-currency) to $220.4 million.
Net sales grew the most in the company’s Latin America Asia Pacific region, jumping 27 percent (22 percent constant-currency). Europe Middle East and Africa also achieved 26 percent sales growth (21 percent constant-currency) primarily driven by high-20 percent growth in EMEA distributors and low-20 percent growth in Europe-direct.
Meanwhile U.S. net sales increased 18 percent, while in Canada net sales were also up 12 percent (7 percent constant-currency), primarily driven by direct to consumer sales.
By brand, Sorel net sales jumped 90 percent (85 percent constant-currency) to $11.4 million and Columbia brand net sales increased 22 percent (20 percent constant-currency) to $414.8 million.
PrAna brand and Mountain Hardwear brand saw a much smaller jump in sales of 9 and 1 percent respectively.
Overall net income increased to $9.7 million, or $0.14 per diluted share.
“Our better than expected second quarter and record first half results reflect continued momentum across our brand portfolio. Our first half revenue surpassed the one billion dollar mark for the first time in company history led by growth in the Columbia brand driven by solid performance in the United States across all channels as well as strong growth internationally led by our Europe-direct business,” said President and CEO Tim Boyle, in a news statement.
“We are also pleased with strong first half performance for both prAna and Sorel, including a positive consumer response to Sorel's Spring 2018 assortment and progress in evolving to a year-round brand. With the strength in the first half performance we are pleased to increase our full year 2018 financial outlook."
Due to its stronger-than-expected performance in the first half of the year, the group has again updated its outlook for 2018. Columbia now expects 2018 net sales growth of approximately 9 to 10.5 percent (compared to its previous outlook of 8 to 10 percent rise), and 2018 net income between approximately $223 million and $230 million (previously between $213 million and $220 million).
"We are excited about the second half of 2018, which we expect to include broad based revenue growth, increased demand creation spending, and continued investment in our strategic priorities."
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