Columbia Sportswear's sales were up by just 2 percent in dollars and local currencies in the second quarter ended June 30, but they still reached a record level of $388.8 million for the period. The variation is not very significant as this is the weakest quarter in the group's financial year.
In fact, the group's sales were still up by 6 percent in dollars and by 8 percent in local currencies for the first six months of the year, and the management's guidance is for mid-single-digit increase for the full financial year, with the operating margin at 10.7 percent of sales.
On a constant-currency basis, sales increased in the latest quarter by 8 percent in the U.S. and by 27 percent in Canada, but they were off by 2 percent in Europe, Middle East and Africa (EMEA) and by 11 percent in Latin America and Asia-Pacific (LAAP).
In EMEA, sales to distributors fell by a low double-digit percentage rate, but sales in the directly controlled markets went up by a mid-teen rate in constant currencies.
Across the group, footwear sales were down by 4 percent in the quarter, while apparel, accessories and equipment inched up by 4 percent. Also on a currency-neutral basis, sales under the Columbia brand went up by 2 and Prana by 23 percent, while Sorel declined by 16 percent and Mountain Hardwear by 20 percent.
The relatively weak quarterly turnover led the group to post a net loss of $8.2 million for the period, up from a year-ago loss of $6.5 million.
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