Global sales increased a solid 22.5 percent to a second quarter record of $152.1 million.
On a constant dollar basis, consolidated sales increased by 17.8 percent in the second quarter.
Net income increased 25.3 percent to $9.4 million, a second quarter record, or $0.23 per diluted share, vs. $0.19 last year.
Full year 2003 net income guidance raised to 10 percent to 12 percent year over year growth.
The Company plans to construct a Midwestern U.S. footwear distribution center.
Columbia Sportswear Company (Nasdaq: COLM), a global leader in the active outdoor apparel and footwear industries, today announced record second quarter net sales of $152.1 million for the quarter ended June 30, 2003, an increase of 22.5 percent over net sales of $124.2 million for the same period of 2002. The Company reported record net income for the second quarter of $9.4 million, a 25.3 percent increase over net income of $7.5 million for the same period of 2002. Earnings per share for the second quarter of 2003 were $0.23 (diluted) on 40.6 million weighted average shares, compared to earnings per share of $0.19 (diluted) for the second quarter of 2002 on 40.1 million weighted average shares.
Compared to the second quarter of 2002, U.S. sales increased by 4.1 percent to $90.5 million, Canadian sales increased by 52.8 percent to $11.0 million, European sales increased by 37.8 percent to $20.4 million and Other International sales increased 97.4 percent to reach $30.2 million for the second quarter of 2003. International distributor sales, including Russia, accounted for the majority of the growth in the Other International sales category.
When measured in constant dollar terms, Canadian sales grew by 38.3 percent, European sales increased by 10.4 percent, and Other International sales increased 92.5 percent for the second quarter of 2003. Consolidated net sales for the second quarter of 2003 increased 17.8 percent to $146.3 million in constant dollars, when compared to the same period of last year.
Outerwear sales increased 13.9 percent to $46.7 million, sportswear sales increased 13.3 percent to $68.8 million, footwear sales increased 60.8 percent to $28.3 million, and accessories sales increased 18.4 percent to $5.8 million, when compared to the second quarter of 2002. Mountain Hardwear, our newly acquired subsidiary, contributed $6.3 million in sales during the second quarter. Equipment sales, a new category consisting of tents and sleeping bags sold by Mountain Hardwear, were $2.5 million in the quarter.
Net income expanded 25.3 percent to a second quarter record $9.4 million. Net income growth was primarily the result of operating margin leverage generated from strong sales growth, particularly the expansion of our international distributor revenue base which carries minimal SG&A costs.
Tim Boyle, Columbia's president and chief executive officer, commented, ''We are excited with our solid second quarter results, demonstrating the expanding acceptance of our brands in key markets worldwide. Second quarter results were bolstered by healthy footwear and sportswear sales, categories where we see significant growth opportunities, validating our strategies to further develop these product categories and illustrating the growing global popularity of our products on a year-round basis. Based on the brand's comparative performance during the spring 2003 season and improvements for the spring 2004 product lines, we are currently optimistic about the opportunity to grow the spring 2004 business. As is customary, we will announce our consolidated spring 2004 order backlog as a component of our third quarter release on October 23rd, 2003.''