After market close today, Columbia Sporstwear Co. posted first-quarter earnings for 2016 that significantly surpassed Wall Street’s estimates for the quarter.
The Portland, Ore.-based firm said its net income for the quarter, which ended March 31, grew 20 percent to $31.8 million, or 45 cents per diluted share, from the year-ago quarter when net income was $26.5 million, or 37 cents per diluted share. Analysts had been expecting diluted earnings per share of 33 cents.
Net sales also advanced 10 percent, or 12 percent on a constant-currency basis, to $525.1 million, from $479 million in the comparable quarter. Market watchers had predicted revenues of $494.2 million. By brand, Columbia net sales increased 9 percent (11 percent constant-currency) to $437.1 million; Sorel net sales advanced 35 percent (38 percent constant-currency) to $18.1 million; PrAna brand net sales gained 12 percent to $41.4 million, and Mountain Hardwear brand net sales were flat year-over-year, at $25.2 million.
“Our diverse brand portfolio drove strong growth during the first quarter, including high-20 percent growth in our U.S. direct-to-consumer channels and low-teen percentage growth in our U.S. wholesale channel,” Columbia’s CEO Tim Boyle said in a release. “The Columbia, Sorel, PrAna and Mountain Hardwear brands each generated double-digit percentage constant-currency net sales growth in North America. We’re also extremely encouraged by our continued progress in our Europe-direct markets, where the Columbia brand drove high 20 percent constant-currency growth.”
Boyle added that strengthening the firm’s brands through innovation, improved distribution and elevated in-store presentation remain among his top priorities as its North American wholesale customers continue to face a challenging retail environment, while other markets experience face ongoing currency and macroeconomic challenges.
“Our strong balance sheet gives us the financial flexibility to continue to make carefully considered long-term strategic investments to position the company to drive profitability,” Boyle said.