US: Columbia Q3 profit soars on international growth
- Q3 net profit up 29% to US$67.5m
- Net sales up 12% to $566.8m
- CEO highlights “improved operational execution”
Strong growth in international markets helped apparel group Columbia Sportswear Company to report a 29% surge in third quarter profit and double-digit sales growth.
The performance was led by the company’s Sorel brand, which saw a 116% revenue increase off a small base, while sales for the core Columbia brand were up 4% and Mountain Hardwear revenues rose 17%.
All geographical divisions recorded revenue growth, led by EMEA (up 51%) and LAAP (up 23%), while growth was more subdued in the US (up 2%) and Canada (up 13%).
Footwear sales surged up 55% and accessories and equipment revenues were up 23%, but outerwear was flat and sportswear increased by 7%.
“Our third quarter sales growth reflects the previously reported increase in our fall season backlog, as well as strong performance in our global direct-to-consumer business,” said Tim Boyle, Columbia president and CEO.
“Improved operational execution resulted in a significant reduction in airfreight costs and produced meaningful operating margin leverage.
“Our increased profitability outlook for the full year reflects the strength of the third quarter and our expectations for continued growth through the remainder of the year.”
Columbia expects full-year net sales to rise by 15-16%, following a predicted 18-20% revenue surge in the fourth quarter.
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