PORTLAND, Ore.– Oct. 26, 1999–ColumbiaSportswear Company(R) (Nasdaq:COLM) today announced record net sales of $187.6 million for its third quarter ended Sept. 30, 1999, an increase of 7.8% over net sales of $174.0 million for the same period of last year.
The Company reported net income for the period of $23.9 million, or $0.93 per share (diluted) on 25.6 million weighted average shares outstanding for the period which represents an increase of 4.4% when compared to reported earnings of $22.9 million, or $0.90 per share (diluted) on 25.5 million weighted average shares outstanding for the third quarter of 1998. Third quarter 1999 results include a one-time charge of $1.5 million, or $0.03 per share, associated with the previously announced closing of the Company’s only manufacturing facility during the quarter.
The increase in net sales for the third quarter is attributable to continued strong growth across all merchandise categories in the Company’s European and Canadian businesses which were up 55.7% and 27.3%, respectively, when compared to the third quarter of 1998. Additionally, the Company’s domestic youth and sportswear merchandise offerings experienced strong sales growth during the third quarter when compared to the same period of last year. Earnings growth for the quarter was primarily attributable to stronger than anticipated gross margins for the period. The gross margin increase for the period resulted, in part, from additional sales of fall 1999 product made after the Company’s “pre-season” booking period. Additionally, closeout sales in the period were less than expected. The quarter also saw increased sales growth in international markets which generally provide higher gross margins than those historically achieved by domestic operations. Favorable factory pricing and on-time deliveries also contributed to the strong margins for the period.
BacklogThe Company reported that consolidated backlog for future deliveries at September 30, 1999 was $262.1 million, which represents an increase of 28.3% when compared to backlog for future deliveries at Sept. 30, 1998 of $204.2 million. A significant part of the increase in backlog resulted from additional order bookings for the spring 2000 season, which increased 41.2% to $160.5 million at Sept. 30, 1999 from $113.7 million at Sept. 30, 1998.
Tim Boyle, Columbia’s president and chief executive officer, commented, “The Columbia brand continues to perform extremely well at retail. This has resulted in strong growth in the backlog with respect to spring 2000 futures orders. Additionally, Europe, which we have identified as a real opportunity for future growth, continues to perform well as we add new points of distribution and increase sales to existing customers in general. In short, our strategies are developing nicely and we will continue to remain attentive to maintaining strong expense and balance sheet controls as we execute our growth strategies which include expanding our footwear and sportswear businesses, seeking growth in key international markets, and selectively adding new points of distribution.”
Columbia Sportswear Company(R) is a global leader in the design, manufacture, marketing and distribution of active outdoor apparel. As one of the largest outerwear manufacturers in the world and the leading seller of skiwear in the United States, the Company has developed an international reputation across an expanding product line for quality, performance, functionality and value. To learn more about Columbia Sportswear, please visit the Company website at www.columbia.com.