Columbia Sportswear Misses Q3 Revenue Targets, Lowers Outlook

Sorel Major Carly Boots
Sorel's Major Carly boots.
Courtesy of brand.

Columbia Sportswear Co. today announced third-quarter sales results after the market close that missed market watchers’ forecasts, but its profits were in line with expectations.

The Portland, Ore.-based owner and maker of several active lifestyle brands said its Q3 revenues fell 3 percent year-over-year, to $745.7 million, missing expectations for sales of $770.5 million.

Net income declined 8 percent year-over-year, to $83.6 million, or $1.18 per diluted share, but was in line with what market watchers had predicted for the quarter.

1 year
Many people want to have good income at home but they dont know how to do that...

Columbia CEO Tim Boyle said the Columbia, Prana and Sorel brands drove mid-teens-percent growth in the North American direct-to-consumer channel, high-20s-percent growth in Europe-direct markets and high-single-digit percent growth in China, partially offsetting the negative effects of sporting-goods retail bankruptcies and cautious inventory management by the firm’s North American wholesale customers, as well as ongoing challenges in Russia and Korea.

“During the third quarter, our go-to-market and operational teams around the world continued to execute well against a challenging consumer environment, setting the stage across the global retail landscape with innovative, trend-right fall-season products supported by compelling brand-marketing campaigns,” Boyle said in a release.

The company downward-adjusted its full-year guidance and now expects net sales growth of 4 percent, with net income after non-controlling interest forecast to rise 8 percent, to a range of $180 million to $187.5 million, or $2.55 to $2.65 per diluted share.