Columbia Sportswear has acquired Montrail, the outdoor footwear company based in Seattle, for $15 million. Scott Tucker, formerly Montrail’s president, is now the brand’s general manager. Brad Gebhard, Columbia’s vice president of footwear, will thus manage a third brand, in addition to Columbia and Sorel. According to SGI estimates, Montrail generated sales of $15 million in 2004, including $12 million in the USA.
In the 4th quarter ended Dec. 31, Columbia’s European sales increased by 21.6 percent in local currencies, indicating a major new momentum for the brand in the continent, where they were up by only 7 percent for the full year. Globally, the company’s sales rose by 5.0 percent in the quarter and by 4.5 percent throughout the year before conversion of foreign currencies into dollars.
In the 4th quarter, the group’s net income fell by 7.1 percent to $36,630,000, though net sales in dollars rose by 4.1 percent to $314.1 million. Dollar sales outside of the USA grew by 17.5 percent to $51.8 million. In Europe, they rose by 14.3 percent to $50.3 million, while in the USA they were up by only 2.4 percent to $185.4 million. Sales in Canada dropped by 18.4 percent to $26.6 million. Segment-wise, footwear sales grew by 20 percent to $63.3 million, sportswear was up by 12 percent to $90 million, equipment jumped by 20 percent to $1.2 million and outerwear fell by 5 percent to $147.4 million.
For the full 2005 year, Columbia’s net income was off by 6 percent to $130,730,000, while revenues increased by 6 percent to $1.12 billion in dollar terms. Sales were up by 8 percent in Europe to $184.4 million, and by 2 percent in the USA to $676.9 million, Canadian sales fell by 2 percent to $114.8 million, while all other sales outside of the USA rose by 27 percent to $179.7 million. The company is projecting a 25 percent drop in net income for the 1st quarter of 2006, with a 1 percent rise in revenues.
In other news, Columbia will now have its name on a car, as the company is collaborating with Nissan Europe SAS on a marketing campaign to improve awareness of both brands in the continent, along with the release of the Nissan X-TRAIL Columbia Edition. The marketing blitz, which began this month, is covering 21 countries in Europe. Upon purchase of an X-TRAIL sport utility vehicle, the consumer will receive a Columbia Selkirk parka.
