Oct 26, 2011
Columbia Sportswear Q3 profit beats; shares rise
Oct 26, 2011
Oct 25 (Reuters) - Columbia Sportswear Co's third-quarter profit raced past Wall Street estimates, led by higher demand for its Sorel brand, prompting the outerwear company to raise its operating margin outlook for the year.
Sorel registered an significant 116% increase in net sales during its 3rd quarter of 2011 - Photo Sorel
The company, which designs and markets sportswear under brands such as Mountain Hardwear, Sorel, Montrail and Pacific Trail, expects fourth-quarter sales to be up about 18-20 percent.
KEY POINTS: Q3 2011 I/B/E/S Q3 2010
Revenue $566.8 mln $569.5 $504.0 mln
Net income $67.5 mln - $52.2 mln
EPS $1.98 $1.60 $1.53
* Sorel quarterly sales rise 116 pct to $72.0 mln
* Sees Q4 oper margin expansion of about 130-150 basis
* Global Spring wholesale backlog at Sept. 30 was 7 pct
higher at $420.7 mln
* Currently projecting 2011 capital expenditures in the
range of $52-$57 mln
Shares of the Portland, Oregon-based company rose as much as 11 percent to an 11-week high of $58.89 on Tuesday morning on Nasdaq.
McAdams Wright Ragen analyst Sara Hasan said, "Most of the beat came from better margins, driven by a number of things, including lower air freight expenses."
Hasan said the company is in a "good position from an inventory standpoint" and there is a good chance that it will be able to sell most of its products at "pretty good prices." She expects less discounting this fall to boost the company's margins.
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