Columbia Sportswear posts 4 percent revenue growth in FY17

Columbia Sportswear Company announced fourth quarter net sales of 776 million dollars, an 8 percent increase, compared with net sales of 717.4 million dollars for the fourth quarter of 2016. Fourth quarter 2017 net loss was 7.1 million dollars or 0.10 dollar per share, and non-GAAP net income was 92.5 million dollars or diluted earnings per share of 1.31 dollars compared with fourth quarter 2016 net income of 84.7 million dollars or diluted earnings per share of 1.20 dollars. Full year 2017 net sales increased 4 percent, to a re2.47 billion dollars compared with 2.38 billion dollars in 2016, while net income for the year was 105.1 million dollars or 1.49 dollars per diluted share, and non-GAAP net income was 210.1 million dollars or 2.98 dollars per diluted share, compared with full year 2016 net income of 191.9 million dollars or 2.72 dollars per diluted share.

Commenting on the results, the company’s President and Chief Executive Officer Tim Boyle said in a media statement: "We are pleased to report better than expected fourth quarter results, including continued growth in Europe, North America, and with our distributor partners around the world. Our 2018 outlook anticipates revenue growth of 5.5 percent to 7.5 percent, and non-GAAP revenue growth of 4 percent to 6 percent. We anticipate diluted earnings per share of 2.88 dollars to 2.98 dollars and non-GAAP diluted earnings per share of 3.17 dollars to 3.27 dollars, driven by growth in the Columbia, Sorel, and Prana brands, and in all four of our geographic regions.”

Highlights of Columbia’s Q4 and FY17 results

Fourth quarter 2017 operating income was 109.4 million dollars and non-GAAP operating income was 115.6 million dollars compared to 100.4 million dollars in the prior year. Operating margin was 14.1 percent, and non-GAAP operating margin was 14.9 percent, compared with 14.0 percent in the prior year. Full year operating income was 263 million dollars and non-GAAP operating income was 277.8 million dollars compared with 256.5 million dollars in the prior year. Operating margin was 10.7 percent and non-GAAP operating margin was 11.3 percent, compared with 10.8 percent in the prior year.

Consolidated fourth quarter net sales increased 8 percent to 776 million dollars with growth in all regions. US net sales increased 8 percent to 492.6 million dollars, Latin America/Asia Pacific (LAAP) net sales increased 2 percent or 3 percent constant currency to 154.3 million dollars, including net sales growth with LAAP distributors, in China, in Japan, and essentially flat net sales in Korea. Europe/Middle East/Africa (EMEA) net sales increased 19 percent or 14 percent to 83.5 million dollars, including an increase in net sales in Europe-direct and to EMEA distributors. Canada net sales increased 14 percent or 9 percent to 45.6 million dollars.

Consolidated 2017 net sales increased 4 percent to 2.47 billion dollars compared with 2016 net sales of 2.38 billion dollars. US net sales during the year increased 1 percent to 1.52 billion dollars, reflecting growth in DTC, partially offset by declines in wholesale. LAAP net sales increased 5 percent or 6 percent to 475.1 million dollars, reflecting net sales growth with LAAP distributors, in China, in Japan, and essentially flat net sales in Korea. EMEA net sales increased 16 percent or 14 percent to 293.7 million dollars, reflecting an increase in net sales in Europe-direct and to EMEA distributors. Canada net sales increased 8 percent or 4 percent to 177.3 million dollars.

Global Columbia brand net sales during the fourth quarter increased 9 percent to 602.4 million dollars, global Sorel brand net sales increased 10 percent or 8 percent to 113.9 million dollars and global Prana brand net sales increased 8 percent to 30.4 million dollars. Global Mountain Hardwear brand net sales decreased 9 percent or 10 percent to 28.4 million dollars. Global apparel, accessories & equipment net sales increased 8 percent or 7 percent to 578.3 million dollars and footwear net sales increased 9 percent or 8 percent to 197.7 million dollars.

Global Columbia brand for the year net sales increased 4 percent to 1.99 billion dollars, global Sorel brand net sales increased 7 percent or 6 percent to 228.8 million dollars, global Prana brand net sales increased 1 percent to 140.9 million dollars and global Mountain Hardwear brand net sales declined 2 percent or 3 percent to 101.6 million dollars. Global apparel, accessories & equipment net sales increased 3 percent to 1.93 billion dollars, while global footwear net sales increased 5 percent to 538.1 million dollars.

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