Columbia Sportswear Company today announced net sales of $121.5 million for its second quarter ended June 30, 2001, an increase of 25.1 percent over the $97.2 million of net sales for the same period of last year.
Net income for the period was up 77.7% to $6.4 million, or $0.16 per share (diluted) on 40.1 million weighted average shares outstanding for the second quarter, compared to net income of $3.6 million, or $0.09 per share (diluted) on 39.2 million weighted average shares outstanding for the same period of last year. Earnings per share comparisons are reflective of the 3 for 2 split that was effected on June 4th, 2001.
The increase in net sales for the quarter is attributable to
continued strength in the Company's key geographic markets as well as
strength in each of the Company's key merchandise categories.
Specifically, compared to the second quarter of 2000, the Company's
Domestic sales grew by 22.6% to $88.0 million, Canadian sales
increased by 14.4% to $7.9 million, and Other International sales
increased 38.7% to reach $25.6 million. As a component of the Other
International classification, the Company's direct European sales grew
by 58.6% to $13.5 million for the second quarter of 2001 when compared
to the same period of 2000. When measured in constant dollar terms,
the Company's European revenue grew by 70% for the period. Compared to
the second quarter of 2000, sportswear sales increased 24.9% to $59.6
million, outerwear sales were up 20.3% to $44.8 million, and footwear
sales grew 42.3% to $12.1 million for the period.
Net income growth for the second quarter of 2001 was due primarily
to growth in net sales for the period coupled with a decrease in
Sales, General and Administrative (SG&A) expenses as a percentage of
sales to 34.6% from 38.0% in the second quarter of 2000. The decrease
in SG&A as a percentage of sales was primarily the result of continued
leveraging of infrastructure investments both domestically and abroad.
Tim Boyle, Columbia's president and chief executive officer,
commented, "The second quarter was driven by relatively healthy retail
performance of the Columbia brand globally and across all product
categories. Despite an overall weak retail climate, we are pleased
with the performance of the Columbia brand and our position in the
marketplace as we move into future seasons. With each of our product
categories and key geographic regions continuing to perform well, we
are in a position to increase our objectives for revenue and earnings
growth for the full year of 2001. At this point, we believe that
revenue growth in the 22-24% range, and net income growth in the
30-34% range are achievable targets for the full year 2001 when
compared to 2000. Investors need to be aware that these projections
are forward-looking in nature, and are based on backlog and forecasts,
which may change, perhaps significantly. In light of the softening
economy in the U.S. we continue to be mindful that the economic
well-being of retailers and consumers may adversely affect sales and
profit margins and cause us to fall short of our current goals.
Therefore, we will continue to operate the Company using a lean,
non-speculative inventory model, while maintaining prudent credit
extension practices with the objective of preserving a very strong
balance sheet. Although it is too early to provide specific guidance
regarding the first half of fiscal 2002, at this point we anticipate
spring 2002 backlog growth in the high single digit to low double
digit range. Although below our historic spring growth rates, we
believe this is a healthy rate of growth given current economic
conditions."
The Company's senior management will host a telephone conference
call at 5:00 p.m. EDT, Thursday, July 26, 2001. The call will include
discussions regarding the Company's second quarter 2001 performance in
general, a review of the Company's geographic and merchandise category
performance, and guidance for future periods. To participate, please
dial 888/849-9218 in the United States (outside the United States,
please dial 415/904-2404) five to ten minutes prior to the call. The
call will also be webcast live on the investor information section of
the Company's website at www.columbia.com. A replay will be available
for 24 hours after the call has ended. To access, please dial
800/633-8284 in the United States (outside the United States, please
dial 858/812-6440) and enter reservation No. 18507133. The replay can
also be accessed on the investor information section of the Company's
website at www.columbia.com until August 9, 2001.
Founded in 1938 in Portland, Ore., Columbia Sportswear Company is
a global leader in the design, sourcing, marketing and distribution of
active outdoor apparel and footwear. As one of the largest outerwear
brands in the world and the leading seller of skiwear in the United
States, the Company has developed an international reputation for
quality, performance, functionality and value. To learn more about
Columbia Sportswear, please visit the Company's Web site at
www.columbia.com.