Columbia Sportswear Posts Mixed Q2

Sorel
Sorel Joan of Arctic knit boot, $170
Courtesy of brand.

Columbia Sportswear Co. on Thursday posted second-quarter results after the market close that were mixed against market watchers’ forecasts.

The company said its second quarter net losses widened to $8.2 million, or 12 cents per diluted share, compared with net losses of $6.5 million, or 9 cents per diluted share in the year-ago same period. Those results topped analysts’ expectations for loss per share of 17 cents.

Revenues, on the other hand, fell below predictions. The Portland, Ore.-based company said its Q2 revenues increased 2 percent, to $388.8 million, from $380.2 million, in the previous year, missing forecasts for revenues of $392 million.

Our successful first half results were highlighted by solid growth from three of our four major brands and improved gross margins in a challenging global environment,” Columbia Sportswear CEO Tim Boyle said in a release. “High-single-digit wholesale growth and low-20-percent direct-to-consumer growth in the U.S., combined with mid-20-percent constant-currency growth in Europe-direct markets and 20 percent constant-currency growth in Canada, demonstrate that we gained market share in each of these important geographies during the first half of 2016.”

Global Columbia brand net sales increased 3 percent, or 2 percent constant currency, to $333.4 million. Global Sorel brand net sales declined 19 percent, or 16 percent constant currency, to $3.5 million. Global Prana brand net sales increased 23 percent, to $32.2 million, and global Mountain Hardwear brand net sales declined 20 percent, to $17 million.

Our powerful brand portfolio, strong balance sheet and disciplined cost management provide us the financial flexibility to continue making strategic investments to build our brands, drive consumer demand, and improve profitability over the long term,” Boyle said.

The company reiterated its full-year guidance, as provided at the end of Q1, and continues to expect mid-single-digit percentage net sales growth, including less than 1 percentage point negative effect from changes in currency exchange rates; mid-single-digit percentage increase in operating income to between $254 million and $263 million, representing operating margin of up to 10.7 percent of net sales; and high single-digit percentage increase in net income to between $184 million and $191 million, or  $2.60 to $2.70 per diluted share, on 70.8 million diluted shares outstanding.

As of 5 p.m. ET, Columbia’s shares had slipped 3.3 percent, to $59.47, in after-hours trading.