Columbia Sportswear Co. posted first-quarter results that beat Wall Street’s estimates after the market closed Thursday.
For the quarter ended March 31, net income more than doubled to $10.1 million, or 29 cents a diluted share, versus $3.9 million, or 11 cents, a year ago. The consensus among Wall Street analysts was 14 cents. The current quarter’s results also included $2 million in restructuring charges, or 6 cents a diluted share. Net sales for the period rose 4.6 percent to $348.3 million from $333.1 million.
Tim Boyle, president and chief executive officer, said, “During the first quarter, cold weather in North America helped us liquidate additional fall season inventory, primarily through our direct-to-consumer channels, putting our inventory levels in better shape than last year at this time.”
Boyle added that the cold weather also helped wholesale customers liquidate more of their fall 2012 inventory, and that they continue to remain cautious in their advance orders for fall 2013.
“Accordingly, based on current advance wholesale order levels, our direct-to-consumer expansion plans, the anticipated effects of transitioning to a joint venture in China and a number of other variables and assumptions, our full-year 2013 outlook anticipates slightly lower net sales compared to 2012,” Boyle said.
The company is projecting second-quarter 2013 net sales to decline 4 to 6 percent compared with the comparable quarter in 2012. That reflects lower wholesale net sales, partially offset by increased direct-to-consumer sales. The second quarter is typically the firm’s lowest volume period.