Columbia increases 2019 outlook on strong first quarter
Columbia Sportswear Company has started the year with more record-breaking sales, the company announced on Thursday.
For the first quarter of 2019, net sales increased 8 percent (10 percent at constant-currency) to $654.6 million, compared to $607.3 million seen last year.
By brand, Columbia brand net sales increased 9 percent (10 percent at constant-currency) to $552.2 million, as did its Sorel brand, where net sales climbed 28 percent to $39.5 million.
Meanwhile, PrAna brand net sales decreased 3 percent to $41.2 million, while Mountain Hardwear brand net sales dipped 11 percent (10 percent decrease at constant-currency) to $21.7 million.
Net sales in the U.S., by far Columbia’s biggest market, increased 14 percent. The company’s Latin America Asia Pacific ("LAAP") net sales were steady, increasing by just 1 percent.
Likewise, the company’s Europe, the Middle East and Africa (EMEA) region was down 1 percent in net sales, but up by 5 percent at constant-currency, as were Canada’s net sales dropping 7 percent (1 percent at constant-currency).
“It is encouraging to see the momentum we created in 2018 continue into this year, with record first quarter net sales, gross margin, operating income, net income and earnings per diluted share,” said President and Chief Executive Officer Tim Boyle.
“During the quarter, we experienced a strong finish to the Fall 2018 sales season as well as excellent early season sell-through of our Spring 2019 assortment.”
Net income increased 64 percent to $74.2 million, or $1.07 per diluted share, from $45.1 million, or $0.64 per diluted share, for the comparable period in 2018. Operating income increased 48 percent to $88 million, or 13.4 percent of net sales.
Looking ahead, the company increased its full-year outlook and is now predicting net sales of $2.98 to $3.04 billion, compared to previously forecasted results of $2.97 to $3.03 billion, representing a net sales growth of 6.5 to 8.5 percent.
Operating income is now expected to be of $378 to $391 million for the full-year and diluted earnings per share of $4.40 to $4.55.
The company will be focusing on enhancing its consumer experience and digital capabilities, as well as its global direct-to-consumer operations among other things this year.
"We are making these investments to enable sustainable long-term profitable growth, make us a more efficient company, and drive market share capture across our brand portfolio and geographic regions," concluded Boyle.
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