Columbia Sportswear tallied a better-than-expected third quarter.
The outdoorwear company said net sales for the quarter rose less than 1 percent to $747.4 million, but net income increased by 5 percent to $87.7 million, equal to $1.25 per diluted share.
For the second quarter, Columbia posted a 3 percent increase in net sales to $389.9 million on a net loss of $11.5 million.
Tim Boyle, Columbia’s president and chief executive officer, admitted that the third-quarter results exceeded the company’s internal expectations and cited “strong sales growth” in Europe and in its direct-to-consumer channel in the U.S.
Net sales in Columbia’s Europe, Middle East, Africa market grew by 20 percent during the quarter totaling $87.5 million. Sales in its Latin America Asia-Pacific region grew by 9 percent to $123. million and sales in Canada grew by 9 percent to $80.9 million.
Meanwhile, sales in the U.S. dipped by 6 percent to $456 million, despite “double-digit percentage growth” in direct-to-consumer sales.
“While our U.S. business adapts to ongoing structural changes, our improved profitability outside the U.S. illustrates the strength of our global business model,” Boyle said.
He added that, “based upon advance orders for spring 2018, we are optimistic that we will continue to generate global growth, including a return to growth in our U.S. wholesale business in the first half of 2018.”
Looking forward to the rest of 2017, Columbia is expecting sales for the year to rise by 3 percent from total 2016 sales of 2.38 billion, with net income of between $183 million and $190 million, equal to up to $2.70 per diluted share.
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