Columbia Sportswear Company (Nasdaq: COLM), a global leader in the active outdoor apparel and footwear industries, today announced record second quarter net sales of $171.1 million for the quarter ended June 30, 2004, an increase of 12.5 percent over net sales of $152.1 million for the same period of 2003. The Company reported record net income for the second quarter of $10.7 million, a 13.8 percent increase over net income of $9.4 million for the same period of 2003. Earnings per share for the second quarter of 2004 were $0.26 (diluted) on 41.1 million weighted average shares, compared to earnings per share of $0.23 (diluted) for the second quarter of 2003 on 40.6 million weighted average shares.
Compared to the second quarter of 2003, U.S. sales increased 17.0 percent to $105.9 million, European sales increased 20.1 percent to $24.5 million, Canadian sales increased 13.6 percent to $12.5 million, and Other International sales decreased 6.6 percent to $28.2 million for the second quarter of 2004.
Excluding changes in currency exchange rates, European sales increased 9.9 percent, Canadian sales increased 7.9 percent, and Other International sales decreased 10.0 percent for the second quarter of 2004. Consolidated net sales for the second quarter of 2004 increased 10.1 percent, excluding changes in currency exchange rates, compared to the same period of last year.
For the second quarter of 2004, sportswear sales increased 31.4 percent to $90.4 million, footwear sales increased 8.5 percent to $30.7 million, accessories sales increased 13.8 percent to $6.6 million, equipment sales increased 4.0 percent to $2.6 million, and outerwear sales decreased 12.6 percent to $40.8 million compared to the second quarter of 2003.
Tim Boyle, Columbia's president and chief executive officer, commented, "Our second quarter results demonstrate the continued strength of our brands domestically and internationally. Strong shipments of spring sportswear in the U.S. and other key markets drove worldwide sales growth. International distributor sales, a component of Other International sales, decreased in the quarter due primarily to the timing of some international distributor shipments. For the full year 2004, we expect growth in our overall international distributor business. Outerwear sales decreased in the quarter primarily due to an expected weakness in the fall youth outerwear category, which began shipping late in the second quarter. As we have discussed previously, additional resources have been devoted to the youth outerwear category, with new styles and product offerings entering the fall 2005 product line. Operationally, we are pleased with our gross and operating margin performance as we invest in effective brand building programs worldwide."
"In reviewing the second quarter revenue results, investors should be aware that the second quarter is our smallest revenue quarter of the year, as we conclude our spring product shipping season and begin shipping fall products late in the quarter. Due to the comparatively low revenue levels in the quarter, changes in shipments in any one channel or category may be excessively pronounced and may not necessarily be indicative of future results," continued Mr. Boyle.
Mr. Boyle continued, "Based on our current outlook, we believe that our strategies will enable us to generate third quarter 2004 revenue growth of 9 to 10 percent, and net income growth of 3 to 5 percent, compared to the third quarter of 2003. For the full year 2004, we anticipate net sales growth of 12 to 13 percent, and net income growth of approximately 10 to 11 percent, compared to 2003. These projections are forward-looking in nature, and are based on backlog and forecasts, which may change, perhaps significantly."