Columbia Sportswear Delivers Major Street Beat In Q3

Columbia Sportswear Delivers Major Street Beat
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Portland, Ore.-based Columbia Sportswear Co.’s stock is soaring in after-hours trading — up nearly 13 percent at press time — after its reported revenues and profits were far greater than Wall Street’s bets for the third quarter.

The company’s results were driven by double-digit revenue growth at each of its brands, 25 percent growth in North America and high-teen constant-currency percentage growth in Europe-direct markets.

“During the third quarter, the Columbia, Sorel and Prana brands combined to generate 26 percent net sales growth across North America. Better supply-chain execution resulted in more timely delivery of wholesale customers’ fall advance orders, which has enabled them to benefit from increased sell-through volumes thus far in the season,” Columbia CEO Tim Boyle said in a release. ” The Columbia brand also continued to demonstrate its resurgence in Europe-direct markets, posting mid-20 percent constant-currency growth in that important region during the quarter.”

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Earlier this month, Columbia Sportswear debuted its new global brand platform, dubbed “Tested Tough,” at an event in New York City.

Net Income: For the third quarter, ended Sept. 30, 2015, net income rose 39 percent, to a $91.1 million, from the comparable quarter’s net income of $65.6 million.

EPS: Earnings per diluted share were $1.28, versus the year-ago quarter’s diluted EPS of 93 cents.

Net Revenue: Net sales increased 14 percent, or 18 percent constant-currency, to $767.6 million, from $675.3 million in the comparable quarter.

Hit, Miss or Beat: The firm beat Wall Street’s estimates for EPS and revenues. Analysts polled by Yahoo Finance had predicted EPS of $1.09 and revenues of $738.7 million.

Executive Insights: “Our record third-quarter and year-to-date results illustrate the increasing earnings power of our brand portfolio. We believe we are only beginning to unlock the long-term potential of our portfolio of brands.”
— CEO Boyle in a release.

Looking Ahead: The company revised its financial outlook upward. The company now expects 2015 net sales growth of approximately 10.5 percent (14.5 percent constant-currency), to more than $2.3 billion, compared with 2014 net sales of $2.1 billion, and 20 percent to 23 percent growth in operating income, to approximately $239 million to $244 million, representing operating margin of approximately 10.4 percent to 10.5 percent.