Columbia Sportswear Q3 net sales rise 29 percent
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Tim Boyle, Columbia's President and Chief Executive Officer, commented, saying, “I'm thrilled to announce these outstanding third quarter results which reflect strong performance by our Columbia and Sorel brands in North American wholesale and direct-to-consumer channels. In addition, strengthening of the Columbia brand in our Europe-direct markets and incremental sales from our new China JV and newly-acquired prAna brand further bolstered top-line growth.
“In response to our strong year-to-date performance, we raised our full year 2014 financial outlook to anticipate consolidated net sales growth of approximately 22 percent and a 35 percent increase in net income. In addition, we raised our quarterly dividend for the second time this year, bringing the cumulative increase in the dividend during 2014 to 20 percent,” Boyle added.
Third quarter consolidated net sales growth of 152.2 million dollars included organic growth of approximately 73.3 million dollars, or 14 percent, coupled with incremental net sales of approximately 50.7 million dollars from the company's China joint venture and approximately 28.2 million dollars from the newly-acquired prAna brand. Changes in currency exchange rates negatively affected the year-over-year net sales comparison by less than 1 percentage point.
Net sales in the US increased 26 percent to 406.3 million dollars, including 28.2 million dollars of incremental prAna net sales; Latin America/Asia Pacific (LAAP) region net sales increased 72 percent to 123.5 million dollars, including 50.7 million dollars of incremental sales from the company's new China joint venture and a 1 percentage point benefit from changes in currency exchange rates; Europe/Middle East/Africa (EMEA) region net sales increased 1 percent to 78.8 million dollars, including a 1 percentage point benefit from changes in currency exchange rates. Net sales in Canada increased 34 percent to 66.7 million dollars, including a 6 percentage point negative effect from changes in currency exchange rates. Apparel, accessories & equipment net sales grew 28 percent to 549.4 million dollars. Footwear net sales increased 33 percent to 125.9 million dollars.
Columbia brand net sales increased 29 percent to 555.4 million dollars, Sorel brand net sales increased 23 percent to 58.2 million dollars, and the newly-acquired prAna brand contributed 28.2 million dollars of incremental net sales. Those increases were partially offset by a 24 percent decline in Mountain Hardwear net sales to 31 million dollars.
Company expects full year 2014 financial results to include global net sales of approximately 2.06 billion dollars, representing 22 percent growth over 2013 net sales of 1.68 billion dollars. Gross margin expansion is expected to be up to 130 basis points compared with 2013 and net income after non-controlling interest of approximately 127 million dollars, or approximately 1.80 dollars per diluted share, representing an increase of approximately 35 percent compared to 94.3 million dollars, or 1.36 dollars per diluted share, in 2013.
For fiscal 2015, company expects net sales to grow at a double-digit rate compared with current 2014 net sales outlook of approximately 2.06 billion dollars.