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Actionable news in COLM: Columbia Sportswear Company,

Columbia Sportswear: Sr. Director Of Investor Relations

The following excerpt is from the company's SEC filing.

& Corporate Communications

Columbia Sportswear Company

(503) 985-4584

rparham@columbia.com

COLUMBIA SPORTSWEAR COMPANY ANNOUNCES

RECORD QUARTERLY AND YEAR-TO-DATE RESULTS;

RAISES FULL YEAR EARNINGS OUTLOOK

Third Quarter 2015 Highlights:

Net sales increased 14 percent (18 percent constant-currency) to a record $767.6 million.

Gross margin expanded 100 basis points to 46.4 percent.

Operating income increased 35 percent to a record $132.3 million, or 17.2 percent of net sales.

Net income increased 39 percent to a record $91.1 million, or $1.28 per diluted share.

The Board of Directors approved a 13 percent increase in the quarterly dividend to $0.17 per share.

Fiscal Year 2015 Outlook Raised to Anticipate:

Approximately 10.5 percent net sales growth (14.5 percent constant-currency).

Approximately 20 percent to 23 percent growth in operating income, generating operating margin of approximately 10.4 percent to 10.5 percent of net sales.

Net income between $165 million and $169 million, or $2.32 to $2.37 per diluted share, 20 percent to 23 percent higher than 2014 net income of $137.2 million, or $1.94 per diluted share.

PORTLAND, Ore.

— October 29, 2015 — Columbia Sportswear Company (NASDAQ: COLM) today announced record net sales of $767.6 million for the quarter ended September 30, 2015, an increase of 14 percent (18 percent constant-currency), compared with net sales of $675.3 million for the same period in 2014. This growth included double-digit net sales increases from each of the company’s brands, 25 percent growth in North America and high-teen constant-currency percentage growth in Europe-direct markets.

Net sales through the first nine months of 2015 increased 14 percent (19 percent constant-currency), to a record $1,626.8 million.

Third quarter operating income increased 35 percent to a record $132.3 million, or 17.2 percent of net sales, and net income grew 39 percent to a record $91.1 million, or $1.28 per diluted share.

perating income through the first nine months of 2015 increased 43 percent to $167.4 million, compared with operating income of $116.7 million for the same period last year

Net income through the first nine months of 2015, including incremental profit from the prAna brand, increased 36 percent to a record $111.0 million, or $1.56 per diluted share, compared to net income of $81.6 million, or $1.15 per diluted share for the comparable 2014 period.

Net income for the first nine months of 2015 included a non-recurring tax benefit of $6.3 million, or $0.09 per diluted share. Net income for the comparable period of 2014 included a non-recurring tax benefit of $5.6 million, or $0.08 per diluted share, and acquisition costs totaling approximately $2.1 million net of tax, or $(0.03) per diluted share, related to the acquisition of prAna Living, LLC.

Tim Boyle, Columbia’s chief executive officer, commented, “During the third quarter, the Columbia, Sorel and prAna brands combined to generate 26 percent net sales growth across North America. Better supply chain execution resulted in more timely delivery of wholesale customers’ Fall advance orders, which has enabled them to benefit from increased sell-through volumes thus far in the season. The Columbia brand also continued to demonstrate its resurgence in Europe-direct markets, posting mid-twenty-percent constant-currency growth in that important region during the quarter.

“On October 9 we launched the largest integrated global marketing campaign in the Columbia brand’s history. The “Tested Tough” brand platform is a global initiative designed to strengthen emotional connections with consumers and drive sell-through in key markets. Our expanded gross margins are enabling us to increase our demand creation investments by 13 percent this year, while driving significantly improved operating margins.

“Our record third quarter and year-to-date results illustrate the increasing earnings power of our brand portfolio. We believe we are only beginning to unlock the long-term potential of our portfolio of brands,” Boyle concluded.

Third Quarter Results

(All comparisons are between third quarter 2015 and third quarter 2014, unless otherwise noted.)

Third quarter consolidated net sales growth of $92.3 million, or 14 percent, (18 percent constant-currency) included:

U.S. net sales growth of 26 percent, reflecting growth from each of the company’s brands, led by Columbia and Sorel, including the effects of more timely delivery of increased Fall 2015 wholesale advance orders, compared with shipments of Fall 2014 advance orders; and

Net sales growth of 16 percent in Canada (39 percent constant-currency), led by the Sorel and Columbia brands;

partially offset by

An 11 percent net sales decline (5 percent constant-currency) in the Latin America/Asia Pacific (LAAP) region, concentrated in the Columbia brand in the company’s Asian markets; and

A 14 percent net sales decline (3 percent constant-currency) in the Europe/Middle East/Africa (EMEA) region, where high-teen constant-currency net sales growth in the company’s Europe-direct business, concentrated in the Columbia brand, was more

offset by a

decline of more than 30 percent to EMEA distributors, primarily

Russia

. (See “Geographical Net Sales” table below.)

Global Columbia brand net sales increased 10 percent (14 percent constant-currency) to $609.7 million. Global Sorel brand net sales increased 48 percent (59 percent constant-currency) to $86.2 million. Global prAna brand net sales increased 22 percent (22 percent constant-currency) to $34.4 million, and global Mountain Hardwear brand net sales increased 12 percent (17 percent constant-currency) to $34.8 million. (See “Brand Net Sales” table below.)

Global Apparel, Accessories & Equipment net sales increased 9 percent (12 percent constant-currency) to $596.1 million, and Footwear net sales increased 36 percent (46 percent constant-currency) to $171.5 million. (See “Categorical Net Sales” table below.)

Third quarter gross margins expanded 100 basis points to 46.4 percent, compared to 45.4 percent for the third quarter of 2014.

Third quarter income from operations increased 35 percent to $132.3 million, or 17.2 percent of net sales, compared with $98.3 million, or 14.6 percent of net sales, for the same period in 2014.

The effective income tax rate for the third quarter was 28.9%, compared to 31.3%, for the comparable period in 2014. The lower tax rate reflected a non-recurring $6.3 million tax benefit related to a decrease in the valuation allowance associated with net operating losses in certain international tax jurisdictions, partially offset by the effects of generating a higher proportion of pre-tax income in the United States, where tax rates are generally higher than in international tax...


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