� Fourth quarter global sales increased 18.5 percent to $257.4 million, a fourth quarter record. Excluding changes in currency exchange rates, fourth quarter sales increased 13.1 percent.
� Fourth quarter net income increased 10.5 percent to a record $32.2 million, or $0.79 per diluted share, compared to $0.72 last year.
� Fiscal 2003 global sales were a record $951.8 million, a 16.6 percent increase over 2002 results. Fiscal 2003 net income increased 17.2 percent to a record $120.1 million for the year.
� Fiscal 2004 net sales are estimated to increase in the low double digits, and net income is estimated to increase up to 10 percent, over 2003 results.
PORTLAND, Ore. � January 29, 2004� Columbia Sportswear Company (Nasdaq: COLM), a global leader in the active outdoor apparel and footwear industries, today announced record fourth quarter net sales of $257.4 million for the quarter ended December 31, 2003, an increase of 18.5 percent over net sales of $217.3 million for the same period of 2002. The Company reported record net income for the fourth quarter of $32.2 million, a 10.5 percent increase over net income of $29.1 million for the same period of 2002. Earnings per share for the fourth quarter of 2003 were $0.79 (diluted) on 40.9 million weighted average shares, compared to earnings per share of $0.72 (diluted) for the fourth quarter of 2002 on 40.3 million weighted average shares.
Compared to the fourth quarter of 2002, European sales increased 60.2 percent to $37.0 million, Other International sales increased 49.8 percent to $35.2 million, U.S. sales increased 7.6 percent to $156.9 million, and Canadian sales increased 13.7 percent to $28.3 million for the fourth quarter of 2003.
Excluding changes in currency exchange rates, Other International sales increased 42.6 percent, European sales increased 35.6 percent, and Canadian sales decreased 4.0 percent for the fourth quarter of 2003. Consolidated net sales for the fourth quarter of 2003 increased 13.1 percent to $245.7 million, excluding changes in currency exchange rates, compared to the same period of last year.
Sportswear sales increased 44.2 percent to $58.7 million, footwear sales increased 29.8 percent to $44.4 million, outerwear sales increased 7.0 percent to $140.0 million, and accessories sales increased 15.5 percent to $13.4 million, compared to the fourth quarter of 2002. Mountain Hardwear, a subsidiary we acquired on March 31, 2003, contributed $8.4 million in sales for the fourth quarter. Equipment sales, a new category consisting of tents and sleeping bags sold by Mountain Hardwear, were $0.9 million for the quarter.
Tim Boyle, Columbia's president and chief executive officer, commented, �We are very pleased with our outstanding fourth quarter financial results. Sales growth continued globally in our sportswear and footwear product categories during the quarter. While soft in the U.S., sales of outerwear products were very strong in Europe and Other International markets, demonstrating the opportunity to grow this category in less mature markets. International sales growth, favorably affected by foreign currency valuations, was strong in diverse markets such as Europe and Japan, as Columbia brands extend to geographic markets worldwide.�
Fiscal 2003 Results
For 2003, the Company reported net sales of $951.8 million, an increase of 16.6 percent over net sales of $816.3 million for 2002. The Company reported record net income for 2003 of $120.1 million, a 17.2 percent increase over net income of $102.5 million for 2002. Earnings per share for 2003 were $2.96 (diluted) on 40.6 million weighted average shares, compared to earnings per share of $2.56 (diluted) for 2002 on 40.1 million weighted average shares.
Compared to 2002, U.S. sales increased 7.0 percent to $596.8 million, European sales increased 41.0 percent to $135.2 million, Other International sales increased 48.4 percent to $113.1 million, and Canadian sales increased 23.1 percent to $106.7 million for 2003.
Excluding changes in currency exchange rates, Other International sales increased 43.5 percent, European sales increased 18.5 percent, and Canadian sales increased 9.6 percent for 2003. Consolidated net sales for 2003 increased 12.1 percent to $914.8 million excluding changes in currency exchange rates, compared to fiscal 2002.
Sportswear sales increased 27.0 percent to $311.3 million, footwear sales increased 35.1 percent to $148.6 million, outerwear sales increased 5.0 percent to $443.7 million, and accessories sales increased 12.7 percent to $43.5 million, compared to 2002. Mountain Hardwear contributed $27.8 million in sales during 2003, including equipment sales of $4.7 million for the year.
Mr. Boyle continued, �Our solid fiscal 2003 results, achieved in a difficult environment for many of our retailers, demonstrate the global strength of our brands. Our strategy of diversifying product lines and geographic distribution was a key driver in 2003 sales growth. For the first time in company history, the combined sales of our sportswear and footwear products made up a majority of consolidated sales during a fiscal year.�
�International sales growth, strengthened by currency valuations, was vigorous in all product categories. International sales, as a percentage of total revenues, increased more than 5 percentage points to constitute more than 37 percent of consolidated revenues in 2003. Moreover, our acquired Sorel and Mountain Hardwear brands provide opportunities to further penetrate additional markets and distribution channels. Overall, we maintain a strong balance sheet and are well positioned to continue to execute our strategies of diversifying our product and geographic revenue base while maintaining a keen focus on expense control and capital investment to strengthen the company long-term.�
Mr. Boyle continued, �Based on our current outlook and our spring order backlog, we currently believe that our strategies will enable us to generate first quarter 2004 revenue growth of 19 to 21 percent and net income growth of 14 to 16 percent compared to the first quarter of 2003. As a reminder, spring accounts for a relatively small percentage of our overall business; the bulk of our revenues and profits traditionally come in the second half of the year.
�It is difficult for us to gauge revenue and profitability levels for the full year 2004 until we gain more visibility into the fall 2004 season. In keeping with our standard practice, we will announce our fall 2004 backlog in our first quarter 2004 earnings release. That said, based on our current estimates for the full year 2004, we anticipate net sales growth in the low double digits, and net income growth of up to 10 percent, compared to 2003. Please note that these projections are forward-looking in nature and are based on backlog and forecasts, which may change, perhaps significantly.�
Contact: David W. Kiser
Investor Relations Manager
Columbia Sportswear Company