Columbia Sportswear Delivers Major Street Beat In Q3

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.”

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.

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