The Oregon-based sportswear company reported net income for the third quarter increasing by 14% to 100.2 million US dollars. Sales increased by 6% in the period. Based on this, Columbia Sportswear is updating its outlook for the year
President and Chief Executive Officer Tim Boyle commented: “As we celebrate our company’s 80th anniversary, I’m delighted to mark this milestone with the strongest quarterly and year-to-date results in our company’s history. While this reflects broad momentum across our brand portfolio and regions, it is exciting to see the Columbia brand US business leading the way. Our robust direct-to-consumer performance, across both our brick & mortar and e-commerce channels, is a testament to brand strength and demonstrates that consumers are responding positively to our innovative product line. In wholesale, the positive momentum we experienced with our Spring 2018 assortment has continued with excellent early season sell-through of our Fall 2018 product line. With better than expected quarterly and record year-to-date results, we are pleased to increase our full year outlook.”
Third quarter results
Columbia Sportswear announced net sales of 795.8 million US dollars for the quarter ended on the 30th of September, an increase of 6% (7% constant-currency), compared with net sales of 747.4 million US dollars for the third quarter of 2017. Third quarter 2018 net income increased by 14% to 100.2 million US dollars, or 1.42US dollars per diluted share, compared to third quarter 2017 net income of 87.7 million US dollars, or 1.25 US dollars per diluted share.
US net sales increased by 9%, with the company operating 135 US retail stores by the 30th of September 2018 (compared with 127 at the same time last year). Reported Latin America Asia Pacific net sales decreased by 4% (3% decrease constant-currency). Europe Middle East and Africa net sales increased by 15%. Canada net sales were flat (3% increase constant-currency), reflecting strong direct-to-consumer (DTC) net sales performance and flat wholesale net sales.
Apparel, accessories and equipment net sales increased by 6% (7% constant-currency) to 617.6 million US dollars. Footwear net sales increased by 6% (7% constant-currency) to 178.2 million US dollars.
Wholesale net sales were essentially flat (1% increase constant-currency) totaling 544.8 million US dollars. DTC net sales increased 23 percent to 251.0 million US dollars.
Nine months performance
Through the first nine months of 2018, net sales grew 194.6 million US dollars, or 12% (10% constant-currency), to 1 884.7 million US dollars, compared to 1 690.1 million US dollars for the same period in 2017. Year-to-date net income increased by 38% to 155.0 million US dollars, or 2.19 US dollars per diluted share, compared to 112.2 million US dollars, or 1.59 US dollars per diluted share, for the same period in 2017.
Columbia Sportswear currently expects 2018 net sales growth of approximately 11.0% to 11.5% (prior 9.0% to 10.5%), compared with 2017 net sales of 2.47 billion US dollars.