The late start of the winter led to weaker than anticipated sales for Columbia Sportswear in the fourth quarter but sales were still up by 3 percent to $717.4 million, which was a rise of 2 percent in constant currencies. The U.S. outdoor group's turnover for the full year reached $2.38 billion, up by 2 percent in dollars and in constant currencies, with a buoyant performance in Europe.
The group's sales in Europe, the Middle East and Africa (EMEA) were up by 9 percent to $253.9 million for the year, including a low 20s percent sales rise in markets covered by the group's subsidiaries, while sales to European distributors declined at a low double-digit rate. U.S. sales were up by 3 percent in spite of the retail bankruptcies and other issues in the market. However, the group's turnover dipped by 3 percent in Latin America and Asia-Pacific, and by 2 percent in Canada.
In constant currencies, the performance included sales increases of 3 percent for the Columbia brand, 1 percent for Sorel and 12 percent for Prana, but Mountain Hardwear's turnover slipped by 10 percent.
The group boasted a gross profit margin of 46.7 percent, up by 0.6 percentage points. It achieved record operating profit, and net income rose by 10 percent to $191.9 million. Columbia Sportswear predicts net sales growth of about 4 percent this year, including a negative impact of about one percentage point from exchange rate changes, and operating income growth of up to 5 percent. Net income is predicted to reach between $192 million and $200 million.
Tim Boyle, Columbia Sportswear's chief executive, spoke during the group's conference call with analysts about concerns regarding a potential U.S. border adjustment tax, in an industry that is already paying substantial import duties.
Much more in The Outdoor Industry Compass.
