Columbia Sportswear Company reported record net sales of $767.6 million for the quarter ended Sept. 30, an increase of 14 percent, or 18 percent constant-currency (c-n), compared with net sales of $675.3 million for the same period in 2014. This growth included double-digit net sales increases from each of the company’s brands, 25 percent growth in North America and high-teen constant-currency percentage growth in Europe-direct markets.
Net sales through the first nine months of 2015 increased 14 percent (19 percent constant-currency), to a record $1,626.8 million. Third quarter operating income increased 35 percent to a record $132.3 million, or 17.2 percent of net sales, and net income grew 39 percent to a record $91.1 million, or $1.28 per diluted share.
Net income through the first nine months of 2015, including incremental profit from the Prana brand, increased 36 percent to a record $111.0 million, or $1.56 per diluted share, compared to net income of $81.6 million, or $1.15 per diluted share for the comparable 2014 period.
Net income for the first nine months of 2015 included a non-recurring tax benefit of $6.3 million, or $0.09 per diluted share. Net income for the comparable period of 2014 included a non-recurring tax benefit of $5.6 million, or $0.08 per diluted share, and acquisition costs totaling approximately $2.1 million net of tax, or $(0.03) per diluted share, related to the acquisition of Prana Living, LLC.
“During the third quarter, the Columbia, Sorel and Prana brands combined to generate 26 percent net sales growth across North America,” said Tim Boyle, Columbia’s chief executive officer. “Better supply chain execution resulted in more timely delivery of wholesale customers’ Fall advance orders, which has enabled them to benefit from increased sell-through volumes thus far in the season. The Columbia brand also continued to demonstrate its resurgence in Europe-direct markets, posting mid-twenty-percent constant-currency growth in that important region during the quarter.
“On October 9 we launched the largest integrated global marketing campaign in the Columbia brand’s history. The “Tested Tough” brand platform is a global initiative designed to strengthen emotional connections with consumers and drive sell-through in key markets. Our expanded gross margins are enabling us to increase our demand creation investments by 13 percent this year, while driving significantly improved operating margins.
“Our record third quarter and year-to-date results illustrate the increasing earnings power of our brand portfolio. We believe we are only beginning to unlock the long-term potential of our portfolio of brands,” Boyle concluded.
