Columbia Sportswear Company, global leader in active lifestyle apparel, footwear and accessories, has reported better than expected net sales and profitability as it announces financial results for the first quarter ended March 31, 2018.
During the period under review, its net sales increased by 12 per cent to a record US $ 607.3 million as compared to US $ 543.8 million in the corresponding period last year. Net sales on non-GAAP basis registered a 10 per cent increase and 7 per cent on constant-currency basis to US $ 599.0 million.
Operating income in the reporting period marked a 24 per cent increase to US $ 59.3 million from US $ 48.0 million in the corresponding period last year while inventory increased by 2 per cent to US $ 406.0 million as compared to US $ 398.8 million in the same period last year.
The apparel retailer further noted a 25 per cent increase in its net income to US $ 45.1 million in the reporting quarter from US $ 36.0 million in the same quarter last year. Net income on non-GAAP basis totalled US $ 36.9 million in the quarter under review.
Region-wise, Columbia Sportswear reported a 9 per cent increase in net sales in the US where it operates a total of 130 retail outlets. Net sales in Latin America Asia Pacific (LAAP) increased by 11 per cent and 4 per cent on non-GAAP basis.
In Europe-direct and modest growth with Europe Middle East and Africa (EMEA) distributors noted a 30 per cent increase in net sales; while Canada reported an 11 per cent increase in net sales during the first quarter.
In view of the positive results in the first quarter, the retailer has now increased its full year 2018 financial outlook. It expects non-GAAP net sales growth of around 6.5 to 8.5 per cent. Also, it anticipates 2018 net income between US $ 213 million and US $ 220 million (earlier between US $ 203 million and US $ 211 million).
