US: Columbia lowers Q4 sales and earnings expectations
Outdoor apparel and footwear business Columbia Sportswear lowered its fourth quarter sales and earnings forecasts, blaming reduced customer traffic and mild weather.
After forecasting sales growth of up to 1.5% in October, Columbia now expects net sales to fall 5% to US$499-503m in the three months to 31 December.
Gross margins are expected to decline 120-130 basis points to 41.2-41.3%, well above previous forecasts of a 50-75 point fall.
Net income, however, is still expected to be slightly up on last year at $37-40m, thanks to a lower than expected income tax rate, but down on the previous estimate of $44m.
Columbia blamed the downgrade on mild winter weather in North America, consumer caution and reduced retail traffic, as well as a more promotional environment.
The company also pointed to lower-than-expected direct sales, higher order cancellations, fewer wholesale reorders and a timing shift in shipments.
Columbia Sportswear is shifting to a joint venture model in China through a partnership with distributor Swire Resources. ...
This report provides information, analysis and valuable insight on developments relating to the performance apparel industry in the following categories: acquisitions, divestments and mergers; corpora...
Outdoor apparel footwear firm Columbia Sportswear has appointed former Mexx executive Shawn Cox to the newly-created position of senior vice president of retail....
This report provides information on the latest developments in: antimicrobial sewing thread; carbon nanotube fibres; compression garments; environmentally friendly finishing treatments; environmentall...
- Why should brands care about China cotton?
- New Gap CEO set to tackle “aesthetic issue”
- Falling euro adds to Bangladesh production woes
- Low labour cost countries linked to highest risks
- Myanmar Code of Conduct a first step in compliance
- M&S Asia head quits as China stores to close
- Abercrombie & Fitch reports “dismal” FY
- Gap names new design head amid mixed Q4
- Pay rise mulled for Sri Lanka garment workers
- US labour concerns at Honduras apparel makers
- Myanmar's Garment Sector - Opportunities & Challenges in 2015
- Apparel Retail: Top 5 Emerging Markets Industry Guide
- Outdoor performance apparel: peaks, valleys, and green fields
- Management briefing: Outlook 2015: Apparel industry issues in the year ahead
- Global market review of swimwear - forecasts to 2019