Columbia Sportswear FY14 net sales increase 25 percent

Columbia Sportswear Company announced net sales of 677 million dollars for the fourth quarter of 2014, an increase of 143.9 million dollars, or 27 percent, compared with net sales of 533.1 million dollars for the fourth quarter of 2013. Full year 2014 net sales increased 415.6 million dollars, or 25 percent, to 2.1 billion dollars and operating income increased 51 percent to 198.8 million dollars, representing operating margin of 9.5 percent compared with operating margin of 7.8 percent in 2013.

Fourth quarter 2014 net income totaled 55.6 million dollars, or 0.79 dollars per diluted share, a 51 percent increase compared with fourth quarter 2013 net income of 36.7 million dollars, or 0.53 dollars per diluted share. Full year 2014 net income increased 45 percent to 137.2 million dollars, or 1.94 dollars per diluted share, compared with full year 2013 net income of 94.3 million dollars, or 1.36 dollars per diluted share.

Commenting on the performance, Tim Boyle, Columbia's President and Chief Executive Officer, said, “2014 was an outstanding year for Columbia Sportswear Company, reflecting strong momentum in North America in the Columbia, Sorel and prAna brands. In addition, despite mild winter weather, we produced 10 percent growth in the Columbia brand in our Europe-direct markets, led by strong sales of trail footwear and outerwear.”

“Looking forward to 2015, we are reaffirming our preliminary net sales outlook from last October. We expect the Columbia, Sorel and prAna brands to be the primary drivers of sales growth, concentrated in North America and Europe-direct markets, offsetting the anticipated effects of a stronger US dollar on our other international businesses. We expect 2015 operating profit to grow at a rate faster than sales growth and earnings per share to increase to between 2.10 dollars and 2.20 dollars,” he added.

Organic growth in the fourth quarter equated to approximately 79.8 million dollars, or 15 percent, while incremental net sales of approximately 44.1 million dollars from the company's China joint venture (JV) and approximately 20 million dollars from the newly-acquired prAna brand contributed the remainder of the fourth quarter net sales growth. Changes in currency exchange rates had a 2 percentage point negative effect on the net sales comparison.

US net sales increased 96.7 million dollars, or 31 percent, including 20 million dollars of incremental prAna net sales. Latin America/Asia Pacific (LAAP) region net sales increased 31 percent to 155.2 million dollars, including 44.1 million dollars of incremental sales from the company's new China JV and a 5 percentage point negative effect from changes in currency exchange rates. Europe/Middle East/Africa (EMEA) region net sales were essentially unchanged from the same period in 2013, including a 2 percentage point negative effect from changes in foreign currency exchange rates. Net sales in Canada increased 10.4 million dollars, or 27 percent, including a 9 percentage point negative effect from changes in currency exchange rates.

Columbia brand net sales increased 100.1 million dollars, or 23 percent, to 527.9 million dollars. Sorel brand net sales grew 26.1 million dollars, or 40 percent, to 92.1 million dollars. These increases were partially offset by a 2.7 million dollars, or 7 percent, decline in Mountain Hardwear net sales to 34.6 million dollars.

Apparel, accessories & equipment net sales increased 94.1 million dollars, or 23 percent, to 510.1 million dollars. Footwear net sales increased 49.8 million dollars, or 43 percent, to 166.9 million dollars.

US net sales during FY14 increased 227.1 million dollars, or 23 percent, to 1.2 billion dollars, including 53.7 million dollars of incremental prAna net sales. LAAP region net sales increased 137.2 million dollars, or 39 percent, to 491.6 million dollars, including 161.4 million dollars of incremental sales from the company's new China joint venture and a 2 percentage point negative effect from changes in currency exchange rates. EMEA region net sales increased 18.5 million dollars, or 8 percent, including a 1 percentage point benefit from changes in foreign currency exchange rates. Net sales in Canada increased 32.8 million dolars, or 28 percent, including an 8 percentage point negative effect from changes in currency exchange rates.

Columbia brand net sales increased 337.4 million dollars, or 24 percent, to 1.75 billion dollars. The newly-acquired prAna brand contributed 53.7 million dollars of incremental net sales. Sorel brand net sales grew 37.5 million dollars, or 29 percent, to 166.2 million dollars. These increases were partially offset by a 12.7 million dollars, or 10 percent, decline in Mountain Hardwear net sales to 119.8 million dollars.

Apparel, accessories & equipment net sales increased 301.6 million dollars, or 22 percent, to 1.68 billion dollars. Footwear net sales increased 114 million dollars, or 37 percent, to 424.4 million dollars. The company currently expects high single-digit 2015 net sales growth (low double-digit growth on a constant-dollar basis) compared to 2014 net sales of 2.1 billion dollars. The company expects fiscal year 2015 gross margins to improve by approximately 20 basis points. Based on the above assumptions, the company expects low double-digit growth in operating income, resulting in 2015 operating margin of approximately 9.7 percent, and net income after non-controlling interest of approximately 150 million dollars to 157 million dollars, or approximately 2.10 dollars to 2.20 dollars per diluted share.